Pep Guardiola's side qualified for the competition after winning the Champions League as part of their historic treble last season.
They also went on to win the UEFA Super Cup, leaving this title as the final trophy needed to complete their collection.
Should City beat the Reds in the semi-final this week, they will take on the winner of Fluminense vs Al Alhy in the final on Friday.
Urawa Red vs Man City: Representing England
Man City have the chance to join an exclusive group of Premier League sides who have won the Club World Cup.
Only three other English teams have won the competition with Manchester United, Liverpool and Chelsea getting their hands on the title.
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United became the first British club to lift the trophy in 2008 after they beat LDU Quito 1-0 thanks to a goal from Wayne Rooney.
Jurgen Klopp's side were the next to win the Club World Cup 11 years later, battling through extra-time to beat Brazilian outfit Flamengo 1-0.
And most recently, Chelsea claimed the crown in 2021 as they were also taken to extra-time by Palmeiras, with Romelu Lukaku securing a 2-1 win in the 117th minute.
So it remains a rare occasion that an English side win this competition, but Guardiola will be eyeing another piece of European glory this week.
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Urawa Red vs Man City: Team news
Erling Haaland and Jeremy Doku have both travelled to Saudi Arabia as part of City's 23-man squad and could play a part despite carrying knocks.
Kevin De Bruyne is also in the Middle East but he is not expected to feature.
City have taken six academy products including Micah Hamilton who scored in the Champions League last week.
Mahamadou Susoho, Max Alleyne, Justin Oboavwoduo, Joel Ndala and Jacob Wright are a part of Guardiola's travelling party for the competition.
The youngsters are not part of the official squad, however, changes can be made up to 24 hours before their opening game.
And with Haaland, Doku and De Bruyne possibly not fit to play, multiple of the academy products could be handed some minutes.
Urawa Red vs Man City: What has been said?
City boss Guardiola has been speaking about his side playing in the Club World Cup.
"To go there you have to win the Champions League," he said.
"I'm very pleased and excited to go there and try to win it, of course.
"The schedule is what it is, the results are what they are and you have to accept it."
He continued: "To play this tournament that we have never played before - you need to be there.
"And we are going to fly there and see the environment, how it is, and play against Urawa the best as possible to deserve to get to the final.
"Of course, it's nice. Years ago we could not imagine to be there and we are there."
Urawa Red vs Man City: How to follow
This Club World Cup semi-final will take place on Tuesday, December 19.
It will be played at the King Abdullah Sports City Stadium in Jeddah, Saudi Arabia.
The game is scheduled to kick-off at 6pm UK time.
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talkSPORT will keep you up to date with all the latest.
And the action will be broadcast live on TNT Sports in the UK.