The West Yorkshire rivals will square off in the second round of the Capital One Cup the week after next.
It was one of the tastiest ties to emerge from last night’s draw and could be considered for live TV coverage.
Parkinson predicts a full house as Leeds make their first trip to Valley Parade since 2000. A bumper gate will give City a significant financial boost – a main aim from the competition this season.
The City boss said: “I think it’s a great draw for the club. There’s nothing better than a Yorkshire derby and I know it’s going to be a cracking atmosphere.
“We really enjoyed our cup nights a few years ago and we worked hard to beat Morecambe the other night to earn ourselves another one.
“On the list of draws we wanted, this is one of the top ones.”
City went to Elland Road three years ago for a first-round clash under Peter Jackson and were edged out 3-2 after leading twice.
But it is 14 years since the Bantams last hosted their neighbours for a 1-1 draw in the Premier League.
Stan Collymore scored City’s goal with a spectacular overhead kick on his debut and got into trouble with the FA for celebrating in front of the away fans.
Collymore, now a national radio commentator, took to Twitter within minutes of the draw with a clip of his goal.
The City players were buzzing and Billy Clarke tweeted: “Wow, seriously can’t wait for that! It’s gonna be ridiculous.”
Leeds are undergoing a period of transition under flamboyant Italian owner Massimo Cellino. Parkinson said: “They are still building a squad together and have made a few more investments in the last couple of days.
“We know it’s going to be a tough game against a team from the Championship but it’s the type you want to be involved in.”