Arsenal will face holders Bayern Munich in the last 16 of the Champions League, while Manchester City take on Barcelona.Sky Sports pundit Alan Smith gave Sky Sports News his immediate reaction to the draw and the prospects for the Premier League teams. He said: "Manuel Pellegrini has got plenty of experience and is an attacking manager, but that doesn't always work in Manchester City's favour - you think of that Bayern Munich game when they got outnumbered in midfield and maybe that's something he will look at against a Barcelona side where, if you play five, they will play six. They love to dominate the middle ground so there's something to think about. If you're a big time player you will react to that draw and be excited about it. "Arsene Wenger and the players knew that, whoever they got, it was going to be tough. It's a repeat of last year when they got taught a lesson at the Emirates and the tie was effectively over. So many of the players that Bayern have got can hurt you. They are the reigning champions and Pep Guardiola is under pressure, not only to retain the trophy as nobody has done, but to do it in a different way and to stamp his imprint on the team. How do you stop them? I don't know, but Arsenal at their best can score goals against most sides and I hope they can do it against Bayern. "I think Jose Mourinho quite enjoys these games. There will be plenty of talk beforehand on his part, I'm sure. We are still waiting for this Chelsea side to settle down under Mourinho and for it to become a side in his image. The consistency we've always seen from his sides, we haven't had it and you don't quite know what to expect from them. Come February, things might be a little different but as things stand going into the tie you think they should win it but who knows? "David Moyes can't have any complaints. It looked as if they would get a favourable draw when you saw the teams that were going to be in their pot, so it's an opportunity for him to move forward and the club to feel better about themselves in the New Year. It's not the best Manchester United side we've seen, far from it, but it is certainly one that is capable of beating this Olympiakos side." Arsenal are now rated at 28/1 to win the Champions League with Sky Bet following the draw, while City have also been eased to 16/1. Chelsea are 12/1, while the Red Devils have been trimmed to 14s from 16s and Sky Bet's Dale Tempest said: "The tie of the round has to be Manchester City against Barcelona, in what will be a huge test for both managers. "We can't separate the sides in the betting on the first leg at the Etihad Stadium with both priced 8/5 for the win, though Barcelona are 2/5 to progress overall."