Gunners face Bayern and City handed Barca
Arsenal will face holders Bayern Munich in the last 16 of the Champions League, while Manchester City are up against Spanish champions Barcelona.
The Gunners and City both finished in second spot in their respective groups and have been handed tough tests in the first knock-out stage.
Arsenal were dumped out at the same stage by Bayern last year, as the German side went on to win the competition.
City have never been beyond the group stage before and face a daunting task in getting past Barcelona to progress any further in the competition.
Manchester United and Chelsea both qualified as group winners and have, on paper, easier tasks ahead of them.
United have been paired with Greek outfit Olympiakos and Chelsea take on Turkish giants Galatasaray, meaning Blues legend Didier Drogba will return to Stamford Bridge for the first time since his exit in the summer of 2012.
The other last 16 ties see AC Milan take on Atletico Madrid, Real Madrid face Schalke, last year's beaten finalists Borussia Dortmund are up against Russian side Zenit st Petersburg and Bayer Leverkusen take on the only French side left in the competition Paris Saint-Germain.
Champions League last 16 draw in full:
Manchester City v Barcelona
Olympiakos v Manchester United
AC Milan v Atletico Madrid
Bayer Leverkusen v PSG
Galatasaray v Chelsea
Schalke v Real Madrid
Zenit st Petersburg v Borussia Dortmund
Arsenal v Bayern Munich
City are priced at 1213.00 to win the Champions League, Chelsea can be backed at 4.50 and Bayern Munich are 3.40.
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