UPDATE-1-Soccer-Merseyside derby pick of the ties in FA Cup third round

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LONDON, Dec 4 (Reuters) - Liverpool will welcome Merseyside
rivals Everton in the FA Cup third round while holders Arsenal
face a trip to second-tier Nottingham Forest following Monday's
draw.
Premier League leaders Manchester City are at home to
Burnley, 12-times winners Manchester United host second-tier
Derby County while Chelsea are away at Norwich City.
Brighton & Hove Albion were pulled out of the hat at home to
arch rivals Crystal Palace and Middlesbrough entertain
Sunderland in a mouthwatering north-east clash.
The third round, to be played from Jan. 5-7, sees teams from
the Premier League and second-tier Championship join the
competition.
Non-league side AFC Fylde could potentially land a lucrative
encounter at top-flight Bournemouth should they upset third-tier
pacesetters Wigan Athletic in their second round replay.
Fleetwood and Hereford will battle it out in their replay to
face 2016 Premier League champions Leicester City.
Struggling West Ham United travel to Shrewsbury Town, who
are currently second in England's third tier.

Third round draw
Ipswich Town v Sheffield United
Watford v Bristol City
Birmingham City v Burton Albion
Liverpool v Everton
Brighton & Hove Albion v Crystal Palace
Aston Villa v Woking or Peterborough United
Bournemouth v AFC Fylde or Wigan Athletic
Coventry City v Stoke City
Newport County v Leeds United
Bolton Wanderers v Huddersfield Town
Port Vale v Bradford City
Nottingham Forest v Arsenal
Brentford v Notts County
Queens Park Rangers v MK Dons
Manchester United v Derby County
Forest Green Rovers v West Bromwich Albion
or Exeter City
Doncaster Rovers v Slough Town or Rochdale
Tottenham Hotspur v AFC Wimbledon
Middlesbrough v Sunderland
Fleetwood or Hereford v Leicester City
Blackburn Rovers v Hull City
or Crewe Alexandra
Cardiff City v Mansfield Town
Manchester City v Burnley
Shrewsbury Town v West Ham United
Wolverhampton Wanderers v Swansea City
Stevenage v Reading
Newcastle United v Luton Town
Millwall v Barnsley
Fulham v Southampton
Wycombe Wanderers v Preston North End
Norwich City v Chelsea
Gillingham v Sheffield Wednesday
or Carlisle United
Ties to be played Jan. 5-7

(Reporting by Christian Radnedge; Editing by Ken Ferris)