- Real Madrid and Barcelona kept apart
- Man Utd vs. Anderlecht in Europa League
Ancelotti guided Real to its long-awaited 10th European title in 2014, but was sacked a year later. After taking a year-long sabbatical, the Italian took over as coach of German champion Bayern.
"Matches against Real are obviously special for me. It'll be exciting for me to go back to Madrid," Ancelotti said.
"Real has a fantastic team, fantastic players and a fantastic coach. It'll be difficult but we're confident and we have a chance to go through. Little things can be the difference."
Real's La Liga rival Barcelona, which reached the last eight after an astonishing 6-5 aggregate win over Paris Saint-Germain, faces Italy's Juventus in a rematch of the 2015 final.
Leicester City, the only English club remaining in the competition, plays Atletico Madrid -- Spain's third title hopeful -- while Germany's Borussia Dortmund meets French league leader Monaco.
The first-leg ties take place on April 11-12, with the return matches on April 18-19.
In the Europa League, favorite Manchester United was drawn against Belgian side Anderlecht.
The possibility of winning the continent's second-tier competition arguably offers United the best chance of qualifying for next season's Champions League, given Jose Mourinho's side is sixth in the English Premier League table and six points behind fourth-placed Liverpool.
Spain's Celta Vigo faces Genk of Belgium, Dutch club Ajax meets Germany's Schalke, while French club Lyon takes on Besiktas of Turkey.