Premier League leaders Arsenal have been drawn against holders Milan in a mouthwatering Champions League last 16 tie.

Liverpool, the team Milan beat in the 2007 final, must take on the Italians' city rivals Internazionale while Celtic face a glamour tie against Barcelona.

Manchester United and Chelsea both benefit from topping their respective groups, with manageable draws against Lyon and Olympiacos respectively.

Arsene Wenger's side have only played one competitive tie against Milan, in the 1995 UEFA Super Cup. The Gunners drew 0-0 at Highbury but went down 2-0 in Italy.

While Arsenal top the table in England, Milan's fine continental form is in sharp contrast to a dismal run at home that has left them 11th in Serie A, a massive 22 points off the pace set by Inter.

Although the Nerazzurri are less well-known than their San Siro co-tenants, they will arguably pose an even tougher test for Liverpool.

Roberto Mancini's team were the runaway league champions last season, and have built a seven-point cushion at the top this term, going 16 games unbeaten.

Celtic know all about Barcelona, having faced them in the 2004/05 group stage, a season after beating them in the UEFA Cup.

The Catalans are perhaps the most star-studded side in the competition, boasting star names such as Thierry Henry, Lionel Messi, Ronaldinho, Samuel Eto'o and Deco.

Elsewhere in the draw, Roma take on Real Madrid, while Porto tackle Schalke and Fenerbahce play Sevilla.

CHAMPIONS LEAGUE LAST 16 DRAW

Celtic v Barcelona

Lyon v Manchester United

Schalke v Porto

Liverpool v Internazionale

Roma v Real Madrid

Arsenal v Milan

Olympiacos v Chelsea

Fenerbahce v Sevilla

Matches will be played over two legs on 19/20 February and 4/5 March, although the second leg of Inter's tie with Liverpool will be played on 11 March 2008 due to a stadium clash with Milan. First-named teams play first leg at home.

Alex Chick / Eurosport