Dyche said: "It's another chance for us to take on one of the super powers of the league. We have done well against them over the season.
"Manchester City are the best side this season and they have shown that, quite obviously. I think everyone agrees.
"They are a very powerful side, both home and away. But that's what we love about football. These challenges are there for you to take and we want the team to take on the challenge.
"We had a really good go at these in the FA Cup, certainly for 60-65 minutes.
"We want to take on these games. Although they are hard games, I think it's terrific for these teams to be visiting Turf Moor, for our fans to see them and, more importantly, see their own side challenge these teams like we have done."
Meanwhile, Ashley Barnes is delighted Dyche has signed a new contract.
"It's a massive boost for everyone involved in Burnley, the job he's done here is magnificent and long may it continue," Barnes said of that new deal.
"He's helped me massively, he's helped each and everyone one of us individually and as a group of lads. It's what he comes across with and what he implements."