Real Madrid lifted the Fifa Club World Cup trophy for a record-extending fifth time in 2022
The Japanese side beat Mexico's Leon in Friday's second-round game to set up a last-four tie against City on Tuesday.
Brazilian club Fluminense will play Al Ahly in the other semi-final on Monday after their 3-1 win over Al-Ittihad.
European champions City and Copa Libertadores winners Fluminense both qualified for the last four of the competition automatically.
It is the final edition of the competition in its current format after Fifa confirmed an expanded tournament featuring 32 teams will take place in 2025.
The seeded tournament saw Al-Ittihad take on the winners of the 2023 OFC Champions League, Auckland, in the only game in the first round - with Saudi Pro League champions Al-Ittihad winning 3-0.
Al-Ittihad joined CAF champions Al Ahly, 2022 AFC champions Urawa Red Diamonds and Concacaf winners Leon in round two on Friday.
The winners of those matches advance to the semi-finals, at which stage Manchester City and Fluminese enter the tournament.
The semi-finals will be played on Monday and Tuesday, with the final and a third-place play-off scheduled for Friday, 22 December.
-- Courtesy of BBC Sport