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Arsenal have been drawn against holders Milan in the second round of the UEFA Champions League, while Liverpool must play Serie A leaders Internazionale.
Celtic also face a daunting tie after being paired with Barcelona in the last 16.
Manchester United will tackle Lyon, who denied Rangers a spot in the knockout stage.
Chelsea appear to have the kindest draw of the British sides after being pitted against Greek outfit Olympiakos.
Elsewhere, Real Madrid take on Roma, Sevilla meet Fenerbahce, and Schalke play Porto.
Ties to be played on 19th/20th February and 4th/5th March.
Champions League second round draw in full:
Celtic v Barcelona
Lyon v Manchester United
Schalke v Porto
Liverpool v Internazionale
Roma v Real Madrid
Arsenal v Milan
Olympiakos v Chelsea
Fenerbahce v Sevilla
Trevor Francis insisted Arsenal should hold their heads high following their Champions League exit at the hands of defending champions Bayern Munich.
Manuel Pellegrini's Manchester City side must seek an early goal at Camp Nou, writes Daniel Storey.
Arsenal bow out at Bayern but there was a positive in Alex Oxlade-Chamberlain, writes Matt Stanger.
Read the thoughts and opinions of Jamie Carragher with skysports.com
Real Madrid's Cristiano Ronaldo says he misses Manchester United and will not celebrate if he scores against them.
Malaga have been banned from all UEFA club competitions for one season due to outstanding debts.
Celtic hope their Champions League showdown with Juventus can convince Victor Wanyama and Gary Hooper to sign new deals.
Malaga have vowed to appeal against the "disproportionate and unjustified" sanctions levied against the club by UEFA.
Malaga attacking midfielder Isco has been named Europe's best under-21 player of 2012.