Holders Manchester City will play FC Copenhagen in this season's Champions League round of 16, while 14-time winners Real Madrid face RB Leipzig.
Copenhagen, who earned a memorable win against Manchester United on their way to finishing second in Group A, are the lowest-ranked side left in the competition.
Elsewhere, Barcelona were drawn to face Napoli, notable for being two former clubs of late Argentina legend Diego Maradona.
United States stars Ricardo Pepi and Sergiño Dest will face international teammate Giovanni Reyna with Borussia Dortmund and PSV Eindhoven drawn against each other.
Arsenal, in their first appearance in the round of 16 since 2016-17, face two-time winners FC Porto, while Bayern Munich were matched up with Lazio.
Paris Saint-Germain, who finished runners-up in Group F behind Borussia Dortmund, drew Spanish side Real Sociedad.
Madrid's clash with Leipzig comes as they were dealt another major injury blow, as defender David Alaba tore an ACL in their 4-1 LaLiga win over Villarreal on Sunday.
Club director of institutional relations Emilio Butragueño said Madrid are unsure whether they will replace the defender in the upcoming January transfer window.
"As Carlo [Ancelotti] said, we'll see in the next few days what we decide [to do]. The team has showed it's capable of facing any challenge. We'll wait over the next few days and see what we do," he said.
"We're facing a difficult situation; it's surprising to have so many injuries, and serious ones. [Thibaut] Courtois, [Eder] Militão and Alaba will be out now. Despite that, we're in a fantastic moment. But obviously the injury to Alaba is a setback; we'll have to work together to overcome it."
The round of 16 kicks off with group winners hosting the first-leg matches, which will be played Feb. 13, 14, 20 and 21.
Return legs will be played on March 5, 6, 12 and 13.
This is the final season of the traditional format, before it becomes a 36-team competition with one knockout bracket based primarily upon final positions.
The final will take place on June 1 at Wembley Stadium in London, England.
Full UCL round-of-16 draw
Porto (Portugal) vs. Arsenal (England)
Napoli (Italy) vs. Barcelona (Spain)
Paris Saint-Germain (France) vs. Real Sociedad (Spain)
Inter Milan (Italy) vs. Atletico Madrid (Spain)
PSV Eindhoven (Netherlands) vs. Borussia Dortmund (Germany)
Lazio (Italy) vs. Bayern Munich (Germany)
Copenhagen (Denmark) vs. Manchester City (England)
RB Leipzig (Germany) vs. Real Madrid (Spain)
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