Warnock's side, who have struggled to mount a serious promotion challenge, have saved their best form for the cup competitions this season and have already beaten Southampton and Everton in the Capital One Cup and latterly Tottenham in the FA Cup to set up an intriguing fifth round clash at the Etihad Stadium.
"According to the bookies we're at 33-2 in a two-horse race," said the 64-year-old. "I don't think many people are going to put any money on us."
He continued: "But the FA Cup is such isn't it? It's such a great competition. It would be a major upset if we went there and won, but we're looking forward to it.
"I don't think many people, when the team sheets came out, gave us much chance against Tottenham or Everton, but it's a little bit more difficult with it being at the Etihad as well.
"They'll be right up for it and I would imagine they'll want to try and win the tie early doors so they can relax and enjoy themselves."
Warnock has taken some stick from Leeds fans in recent weeks and one point gained from their last three league games has left them eight points adrift of the play-offs.
"We've done brilliant in the cups this year, I don't think anyone's done better than us," Warnock said. "Everton played a strong team, Tottenham played a strong team and we did well against Chelsea for 45 minutes.
"We've had a very good run and it's shown what ability we've got in the squad. That's what makes it more frustrating in the league. But this is by far the toughest one. They're champions of the Premier League, we're away from home and it's the only competition they've got left to win. It's difficult.
"But we're going to enjoy it. There are no league points at stake and I'm sure the fans will enjoy going over there."