Spurs host the Premier League champions at their new home for the first-leg of their last eight clash on Tuesday.
And while the north Londoners are considered underdogs by many, Pearce insists the tie could go either way.
The former City boss told talkSPORT: “It’ll be a fantastic game. I think it’s the worst possible draw for City at this stage in the competition.
“I’m not sure Tottenham will be too enamoured by it either. But I think it’s going to be a very tight game.