Manuel Pellegrini's had initially been cut to 6/4 in the outright market after beating Chelsea 2-0 on Saturday night but their chances of glory increased when being handed what would seem to be a favourable home tie with Sky Bet Championship opposition.
The Latics (66/1) of course shocked City, who are 10/11 with Sky Bet, 1-0 in last year's final thanks to a late header from Ben Watson in what proved Roberto Mancini's last match in charge of the Manchester club, but few will expect a repeat result this time.
Two of City's biggest remaining rivals in the draw - Arsenal and Everton - will meet in the quarter-finals at the Emirates Stadium.
The Gunners gained revenge over Liverpool for last weekend's 5-1 Premier League thrashing at Anfield with a 2-1 home victory on Sunday and they are second favourites at 11/4.
Everton are unsurprisingly next in the betting at 5/1 having seen off Swansea 3-1 at Goodison Park.
Sunderland, who will next meet Brighton (50/1) or Hull (18/1), are 16/1 while Sheffield United have been cut to 80/1 by Ladbrokes after beating Nottingham Forest to set up a quarter-final with either Sheffield Wednesday (125/1) or Charlton (150/1).
Draw:
Arsenal v Everton
Brighton/Hull v Sunderland
Sheffield United v Sheffield Wednesday/Charlton
Manchester City v Wigan
•Matches to be played over the weekend of March 8-9.