Littler made it all the way to the final last time out, where he was beaten by Luke Humphries, and enters this year’s edition as the number four seed.
Littler is one of 32 seeds who will enter the tournament at the second round, with 96 players in total bidding for the Sid Waddell Trophy and the £500,000 top prize.
The remaining 64 players will contest the first round, with the 32 winners to take on the 32 seeds in the second round.
Sherrock has drawn Ryan Meikle in the first round, with the winner facing the prospect of taking on the red-hot Littler in his first outing of the tournament.
The remaining top-five seeds sees defending champions Humphries, 2023 champion Michael Smith and three-time champion Michael van Gerwen joined by 2018 champion Rob Cross.
Number-one seed Humphries, who is aiming to become the fourth player in history to defend his title after Phil Taylor, Adrian Lewis and Gary Anderson, will take on either Thibault Tricole or Joe Comito in the second round.
Englishman Smith will take one of Dutch pair Kevin Doets and Noa-Lynn van Leuven, who is the first first transgender woman in history to qualify for the tournament.
The World Darts Championship begins on December 15, with the semi-finals and final taking place on January 2 and 3 respectively.
Click here to see the World Darts Championship bracket.
Second-round draw
Luke Humphries (1) vs Thibault Tricole or Joe Comito
Raymond van Barneveld (32) vs Nick Kenny or Stowe Buntz
James Wade (16) vs Jermaine Wattimena or Stefan Bellmont
Peter Wright (17) vs Wesley Plaisier or Ryusei Azemoto
Stephen Bunting (8) vs Alan Soutar or Kai Gotthardt
Dirk van Duijvenbode (25) vs Madars Razma or Christian Kist
Damon Heta (9) vs Connor Scutt or Ben Robb
Mike De Decker (24) vs Luke Woodhouse or Lourence Ilagan
Luke Littler (4) vs Ryan Meikle or Fallon Sherrock
Ritchie Edhouse (29) vs Ian White or Sandro Eric Sosing
Danny Noppert (13) vs Ryan Joyce or Darius Labanauskas
Ryan Searle (20) vs Mensur Suljovic or Matt Campbell
Rob Cross (5) vs Scott Williams or Niko Springer
Gian van Veen (28) vs Ricardo Pietreczko or Xiaochen Zong
Nathan Aspinall (12) vs Cameron Menzies or Leonard Gates
Andrew Gilding (21) vs Martin Lukeman or Nitin Kumar
Michael Smith (2) vs Kevin Doets or Noa-Lynn van Leuven
Krzysztof Ratajski (31) vs Richard Veenstra or Alexis Toylo
Chris Dobey (15) vs Stephen Burton or Alexander Merkx
Josh Rock (18) vs Karel Sedlacek or Rhys Griffin
Jonny Clayton (7) vs Mickey Mansell or Tomoya Goto
Daryl Gurney (26) vs Florian Hempel or Jeffrey De Zwaan
Gerwyn Price (10) vs Kim Huybrechts or Keane Barry
Joe Culley (23) vs Wessel Nijman or Cameron Carolissen
Michael van Gerwen (3) vs James Hurrell or Jim Long
Brendan Dolan (30) vs Chris Landman or Lok Yin Lee
Gary Anderson (14) vs Jeffrey de Graaf vs Rashad Sweeting
Ross Smith (19) vs Jim Williams or Paolo Nebrida
Dave Chisnall (6) vs Ricky Evans or Gordon Mathers
Gabriel Clemens (27) vs Niels Zonneveld or Robert Owen
Dimitri van den Bergh (11) vs William O'Connor or Dylan Slevin
Martin Schindler (22) vs Callan Rydz or Romeo Grbavac