The chosen ground is a 7,000-capacity stadium used primarily by City's women's team and academy sides.
The final is confirmed for Thursday 14 May at 7pm, broadcast live on TNT Sports. Manchester City were drawn as the home team but cannot use the Etihad Stadium due to a combination of ongoing North Stand construction work and a test event booked for 20 May.
It is the first time a Manchester derby has featured in an FA Youth Cup final since 1986, when the competition was played across two legs at Old Trafford and Maine Road, with City winning on both occasions. The prospect of 60,000 or more supporters attending at Old Trafford had been widely discussed once the draw was made.
Manchester United offered their stadium as an alternative and the FA also raised the possibility of a switch, but City declined, citing their entitlement as the designated home team and the construction constraints at the Etihad.
The decision has drawn frustration from United, with sources close to their under-18 setup describing their disappointment. United's 2022 final drew over 67,000 fans to Old Trafford to watch a team including Kobbie Mainoo and Alejandro Garnacho defeat Nottingham Forest.
City's own record as home club in a Youth Cup final came two years ago, when 20,000 attended at Etihad Stadium for their win over Leeds United — a crowd three times the capacity of the Joie.
It is the only occasion this century in which a home club has used an academy ground rather than their main stadium to host a Youth Cup final. United sources feel the decision robs the players involved of what could be the defining experience of their early careers.
City's academy squad, managed by Oliver Reiss, won the Under-18 Premier League Group North title last weekend.