Holders Manchester City face Huddersfield Town, while last season's losing finalists Manchester United take on 2013 champions Wigan Athletic.
In other all-Premier League draws, Tottenham Hotspur will host Burnley, Crystal Palace are at home to Everton and Brentford face Wolverhampton Wanderers.
The matches will be played across January 5-8.
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Find the draw in full below.
FA Cup draw in full: Arsenal meet Liverpool while Newcastle clash with Sunderland in headline fixtures
Arsenal will play Liverpool at home in the FA Cup third round after Sunday’s draw.
The meeting of the two Premier League giants is surely the standout fixture of one of English football’s most iconic weekends, due to be played on the weekend of Saturday 6 January, 2024.
The Gunners have historically dominated the FA Cup and are record winners with 14 triumphs but haven’t gone past the fourth round in any of the last three seasons.
FA Cup draw: That's it
Arsenal vs Liverpool and Sunderland vs Newcastle surely the standouts!
FA Cup draw: Next tie
Hull City vs Birmingham
FA Cup draw: Next tie
Newport or Barnet vs Eastleigh or Reading
FA Cup draw: Next tie
Maidstone vs Stevenage or Port Vale
FA Cup draw: Next tie
Plymouth vs Sutton
FA Cup draw: Brentford up!
Brentford vs Wolves
FA Cup draw: Next tie
Coventry vs Oxford
FA Cup draw: QPR up!
QPR vs Bournemouth