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The Hoops were drawn against Russell Martin's side in the First Round Proper of the historic competition.
City have beaten Dorchester Town, Enfield Town and Torquay United in their three qualifying games on their way to the First Round.
2021 FA Cup champions Leicester will visit the MGroup Stadium on the weekend of November 7 and 8.
After back-to-back relegations from the Premier League and then Championship, the Foxes currently compete in League One, sitting 14th ahead of a Tuesday night clash away at Bromley.
City's neighbours Oxford United have already beaten the struggling East Midlands outfit this season with an emphatic 4-0 victory at the King Power Stadium.
Leicester City manager Russell Martin (Image: Ryan Crockett/PA Wire)
Aaron Ramsey's U's have been drawn to fellow League One side Stevenage in their first FA Cup fixture of the season.
Fans and spectators have reacted to the Hoops' headline draw with excitement at the pending visit of a team who were playing UEFA Champions League football under a decade ago.
🦊 The Foxes are coming to OX3! 🏆 We've been handed a HOME tie against Leicester City in the Emirates FA Cup First Round. 🗓️ The tie is scheduled to take place on Saturday 7th November. 💙 Up the Hoops! #OCFC https://t.co/RWVKC8Y7va
— Oxford City FC (@OxCityFC) October 19, 2026
The club's CEO Justin Merritt reacted to the thrilling draw, telling BBC Oxford Sport : "If you were going to pick one, Oxford United aside – it would have been a lovely Oxford derby – but I had Leicester, Oxford or Sheffield Wednesday as my choices.
"Getting a big side like that down here is going to be a terrific occasion for not just the players and the management but the fans obviously. Also, all the staff that work here day in, day out.
"So, absolutely brilliant. We’re really looking forward to it."
When asked about the potential television coverage of the clash, Merritt added: "I really hope so.
Fernando Forestieri coming up against Leicester City again, this time for #OxfordCity 🏆 Feel like something memorable happened when facing the Foxes previously... 🤔 #ocfc #lcfc https://t.co/JgGS4jFZb5
— malachi (@MalachiObrey) October 20, 2026
"We’ve had a few of those in the past few years and, at our level, adding extra revenue, plus exposure, is absolutely brilliant. It’s great for the players as well.
"So, hopefully the TV people will look at that and think it’s an attractive tie.
Fernando Forestieri made his Oxford City debut against Hebburn (Image: Oxford City FC)
"I’m sure Leicester will enjoy the difference in level but not necessarily the fact they’re coming and playing in a tight ground on a 3G surface."
One X user was immediately filled with confidence at City's prospects, saying: "Genuinely think Oxford City can pull off a shock vs Leicester."
#FACup @OxCityFC CEO Justin Merritt reacts to being drawn at home to Leicester City in the 1st round #lcfc https://t.co/qRtzNWTDh3
— BBC Oxford Sport (@bbcoxfordsport) October 19, 2026
Pundit and co-host of Not The Top 20 Podcast added further perspective on X, saying: "Leicester City will play an FA Cup tie on the same pitch where we played a game of 11-aside for my stag the same year they won it."
Another user added: "Stevenage at home boring...Oxford City vs Leicester very good.
"It will be nice for Leicester to lose to a different Oxford team for a change."