City defeated Dynamo Kiev to reach the last eight of Europe's elite competition for the first time.
PSG, meanwhile, knocked Chelsea out as the French team look to add the Champions League to their domestic Ligue 1 title.
Elsewhere, Wolfsburg were paired with Real Madrid, Bayern Munich tackle Benfica and holders Barcelona were drawn against fellow Spanish side Atletico Madrid.
The quarter-final ties will be played over April 5/6 and April 12/13.
City are currently fourth in the Barclays Premier League table, four points ahead of sixth-placed Manchester United, whom they host on Sunday.
While not yet conceding the championship race, overhauling a 12-point deficit on leaders Leicester remains a difficult task for Manuel Pellegrini's side, who last month won the Capital One Cup with victory over Liverpool at Wembley
Getting past PSG and into the semi-finals of the Champions League will also prove no mean feat - especially with Vincent Kompany injured again.
Laurent Blanc's men have already wrapped up the Ligue 1 title in style, inspired by veteran Swedish forward Zlatan Ibrahimovic and showed with their 4-2 aggregate victory over Chelsea in the last 16 that they remain very much determined to prove themselves a continental super-power
City and PSG have met just once before, playing out a goalless draw in Manchester during the group stages of the 2008/09 UEFA Cup.