It will be the second meeting of the season between the Premier League team and the current runners-up in the Danish domestic league, Superligaen. At the beginning of October, the Danes surprisingly won 3-2 at the City Ground after two goals on set pieces.
The English outfit finished 13th in the league phase of the tournament and secured access to the 1/8-finals thanks to a 4-2 aggregate win against Turkish side Fenerbahce in the playoff round.
The first match will be played at the City Ground on 12 March while the return leg in Herning will be played on 19 March.
The Danes will also start with an away match and finish at home in a potential quarter-final in April, where they will face the winner of the match between FC Porto and Stuttgart.
FC Midtjylland booked their ticket for the 1/8-finals after finishing third in the league phase, where the team won six out of eight matches and picked up 19 out of 24 possible points.
The Danes secured wins against Nottingham Forest, Genk, Dinamo Zagreb, Celtic, Sturm Graz, and Maccabi Tel Aviv while they drew against Brann and were defeated by AS Roma.