The Sky Blues won the 2006/07 Cup, beating Walsall in the final without playing in a competitive league but with City Reserves again only playing friendly matches, the club have decided not to enter the competition and pay the fine instead, like Aston Villa.
The City of Coventry will have a representative in the Cup - Coventry Sphinx have been drawn at home to Bromsgrove Rovers in a second round tie.
Other local sides involved are Rugby Town whose "A" team will play Racing Club Warwick in a first round match with the winning team getting a trip to Solihulll Moors.
Also in Round Two, Bedworth play either Sutton Coldfield or Redditch United, Stratford are at home to Causeway, Nuneaton Town play Wolves, Atherstone are at home to Halesowen and Leamington travel to Studley.
Games in Round Two must be played on or before October 11th