Champions AC Milan to face Arsenal

NYON, Switzerland -- Holders AC Milan will face English Premier League leaders Arsenal in a massive Champions League last 16 clash in the new year, while city rivals Inter will come up against Liverpool.

"It's Milan vs. England," AC Milan organizing director Umberto Gandini said.

"We've seen better draws. Certainly this was the most difficult of the teams we could have faced.

"We'll be playing as the reigning European and world champion and hopefully we can keep going," he added.

Manchester United have been paired with six-time French champions Lyon.

Celtic are another British side with a daunting task, having been drawn against Barcelona, but Chelsea will not be unhappy at the prospect of tackling Olympiakos of Greece.

Real Madrid can expect a tough time against Roma, who are currently second in Serie A.

AC Milan and Arsenal have only met once before - in 1994 in the European Superclub competition, the Italians winning 2-0 on aggregate.

Arsene Wenger's side are in fine form and Arsenal managing director Keith Edelman insisted they did not fear the seven-times Champions League winners.

"It's a great match and I'm sure the fans will be trying to book tickets already," he said. "Games don't come much bigger than this. I'm sure it will be highly charged and very competive.

"I think we would have preferred an easier one. We want to win all four competitions and we've got a big enough squad to compete in all of them."

Manchester United secretary Ken Ramsden expects the Champions League to be his club's main objective this season.

"As a fan I would say we want the Champions League more than anything. We've only had it twice which isn't enough for a club of our size," Ramsden said.

"Lyon are one of the better teams from the runners up pot but they won't be pleased at getting us."

Celtic chief executive Peter Lawwell was far from dismayed by being drawn against Barcelona. "Gordon Strachan has done a fantastic job to get us into the last 16 two years in a row and he will have them prepared. Bring them on.

"We've got a good home record and hopefully that will help us go through. Any team we got we would be the underdogs. We hope to give a great account of ourselves.

"It's an absolutely fantastic tie and a formidable task. We have a great connection with Barcelona and we are looking forward to welcoming them back. It will be another great night.

"We've played them twice in the last four years. There is a friendship there. There's sympathy between the supporters and the ethos is similar."

Inter Milan's home game against Liverpool will be played a week later than the other second legs because AC Milan also play their second match at home.

Liverpool chief executive Rick Parry insists there is no extra pressure on coach Rafael Benitez, who led Liverpool to Champions League glory in 2005, to beat Inter.

"Results recently don't make it more significant," Parry said. "We know what we are trying to achieve and we are all focused on it. It's all about what happens on the pitch. That's the priority."

Liverpool, Champions League runners-up last season, qualified despite failing to win any of their first three group matches. But Parry believes they can go on another extended run.

"We stopped a few hearts in the way we qualified. We've done well in recent years and we want to do well again," he said.

"It's a big one but it was going to be big whoever we drew. It's a very long time since we played them. They are a very good team and they doing well in the Italian league. It's going to be tough."

Last 16 draw:

Celtic v Barcelona

Lyon v Manchester United

Schalke v Porto

Liverpool v Inter Milan

AS Roma v Real Madrid

Arsenal v AC Milan

Olympiakos v Chelsea

Fenerbahce v Sevilla

(First round on February 19/20, return legs on March 4, with Inter Milan v Liverpool on March 11) E-mail to a friend