Holders Barca to meet city rivals Espanyol in King's Cup

MADRID (Reuters) - Holders Barcelona will continue their bid for a record-extending 28th Spanish King's Cup against local rivals Espanyol and Atletico Madrid will face Rayo Vallecano in another city derby following Friday's draw for the last 16. Barca, who play at Espanyol in La Liga on Jan. 2, will host their Catalan rivals in the Cup first leg on Jan. 6 and the return will be played at Espanyol's Cornella-El Prat stadium a week later. Third-tier Cadiz, who went through after Real Madrid were expelled for fielding an ineligible player in their last-32 tie, meet Celta Vigo and another city derby will feature Sevilla against Real Betis in an all-Andalusian clash. Gary Neville's Valencia play Granada, Athletic Bilbao meet Villarreal and Deportivo La Coruna were drawn against second-division Mirandes, who knocked Malaga out in the last 32 and are the only other non-La Liga side left in the competition. The final last-16 tie pits Las Palmas against Eibar. (Reporting by Iain Rogers, editing by Ed Osmond)