Liverpool have been drawn to face Champions League holders Barcelona in the draw for the last 16.
The first leg will be played at the Nou Camp as Liverpool try to repeat their 2005 Champions League triumph.
Jose Mourinho will return to Porto, where he won the trophy in 2004, with Chelsea, while Manchester United have drawn French outsiders Lille.
Celtic were paired with Italian giants AC Milan, while last season's runners-up Arsenal play PSV Eindhoven.
Chelsea, Manchester United and Arsenal will have the benefit of playing their second leg games at home after finishing top of their groups.
Scottish champions Celtic will hope their outstanding home form in the competition so far will establish a platform for progress after the second leg in the San Siro.
Two former winners, Real Madrid and Bayern Munich, will play each other with a quarter-final place at stake.
Gerard Houllier's French champions and dark horses Lyon will play AS Roma, while Inter Milan play talented Spanish side Valencia.
Full draw:
Porto v CHELSEA
CELTIC v AC Milan
PSV Eindhoven v ARSENAL
Lille v MANCHESTER UNITED
Roma v Lyon
Barcelona v LIVERPOOL
Real Madrid v Bayern Munich
Inter Milan v Valencia
(Ties to be played on 21/22 February and 6/7 March)
