Forest boss Paul Hart told the club's official site: "It's a good draw for us. You could argue it would have been nice to have been drawn to face a Premier League club at our place. But we have had some titanic battles with Sheffield United in recent years and I'm sure this one will be no exception."
He added: "It will be difficult but we will go into the game confident of getting the right result."
The last meeting back in September will be remembered for David Johnson breaking his tibula and fibia in his leg instead of the result where we ran-out 3-1 winners.
Sheffield United and Neil Warnock in particular have good cup records with Newcastle and Arsenal having to knock them out of semi-finals in recent years.
Nottingham Forest Ladies have also progressed in the FA Cup after beating Premier League side Oldham Curzon 3-0.
Nottingham Forest Chief Executive Mark Arthur said: "I am very pleased for the girls and Ladies and obviously wish them the best of luck for the next round."
They will now travel to Chelsea in the last 16.