Defending champion AC Milan will face English football club Arsenal in the last 16 of the European Champions League.

AC's city rivals Inter Milan, unbeaten in Serie A this season, will play Liverpool, which AC Milan defeated in last season's final, 2-1.

Arsenal missed out on a favorable seeding after finishing second in its qualifying group. It will host AC Milan in the first leg of the knockout phase in February 20th, with the return leg two weeks later.

In other match-ups determined in Friday's draw in Nyon, Switzerland, Scotland's Celtic will face 2006 winners Barcelona of Spain, and Manchester United faces six-time French champions Lyon.

Roma is matched against Spanish giants and nine-time former champions Real Madrid.

Chelsea plays the Greek underdogs Olympiacos, Germany's Schalke faces Porto, and Turkish champion Fenerbahce goes against Spain's Sevilla.

Some information for this report was provided by AP and Reuters.