Chelsea will meet Barcelona and Real Madrid [Images] will face Arsenal [Images] in the first knockout round of the Champions League following the draw made in Nyon on Friday.
Chelsea beat Barcelona 5-4 on aggregate at the same stage of the competition last season while Arsenal have never met Real Madrid in European competition before.
European champions Liverpool will face Benfica, who beat English rivals Manchester United [Images] last week to clinch their place in the last 16.
AC Milan, last season's beaten finalists, face a tough match against Bayern Munich.
The draw also sees Werder Bremen play Juventus, PSV Eindhoven meet Olympique Lyon, Ajax Amsterdam against Inter Milan and Rangers against Villarreal in the third clash between British and Spanish teams.
PSV met Lyon in the quarter-finals last season with the Dutch side going through 4-2 on penalties.
The first legs will be played on February 21/22 with the return legs on March 7/8.
First knockout round (Team named first at home in first leg)
Chelsea FC v FC Barcelona
Real Madrid CF v Arsenal FC
Werder Bremen v Juventus
FC Bayern M�nchen v AC Milan
PSV Eindhoven v Olympique Lyonnais
AFC Ajax v FC Internazionale Milano
SL Benfica v Liverpool FC
Rangers FC v Villarreal CF
UEFA Champions League 2005-06: The Complete Coverage
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