Tottenham will play Chelsea in the semi-finals of the Carabao Cup, while holders Manchester City face League One side Burton Albion.
The semi-finals will be played over two legs, with the first set to be played on the week commencing January 7, and the second to be played on the week commencing January 21.
When asked about the draw, Mauricio Pochettino told Sky Sports: "This will be our fourth London derby. We started the Carabao Cup against Watford, then we played against West Ham at the Olympic Stadium, tonight was Arsenal and now a semi-final against Chelsea.
"Chelsea is a great team and it's going to be very tough, but we are excited."
Chelsea assistant manager Gianfranco Zola said the draw "could have been better but it is fine".
Pep Guardiola's City saw off Leicester in a penalty shootout on Tuesday, with Burton into the last four of the competition for the first time after winning at Middlesbrough.
Piers Morgan, an Arsenal supporter, performed the draw wearing a Spurs shirt alongside Peter Crouch, after he lost a £1,000 charity bet to the former Tottenham striker on the outcome of Wednesday's match at the Emirates.