Arsenal to tackle holders Milan in Champions League while Liverpool face Inter

• The Premier League club-by-club

While Chelsea will not fear a d o u b l e h e a d e r w i t h Olympiakos, Liverpool must overcome Serie A leaders Inter Milan while holders AC Milan await Arsene Wenger and his ambitious young Arsenal side.

As for United, they face a tie with Lyon, a draw Sir Alex Ferguson suggested was "the hardest we could have got".

It will be much tougher for Arsenal and Liverpool, though, with the pair paying a predictable penalty for failure to win their group.

UEFA acted quickly last night to move Liverpool's second leg in Milan to March 11, a week after Arsenal are due there to play their game at San Siro, the stadium that the Italian clubs share.

Liverpool manager Rafael Benitez admitted last night that his team will have to repeat their heroics of previous years if they are to make the last eight.

"We expected a difficult draw," he said. "We know Inter, we have experience against them and we have confidence. If you want to progress in the Champions League, then you have to beat the top sides.

"I know they are a good side, but they will be worried for sure. We have plenty of time to watch them and to prepare.

"All of the teams we could have been drawn against are difficult, but there is nobody we fear. We need to make sure we do well in the home leg, try to win well and score some goals."

Perhaps the greatest disadvantage for Liverpool and Arsenal is that they play at home first. Gunners manager Wenger is just hoping that the Milan who have struggled in the league are the team who turn up rather than the side who won the trophy in May.

Wenger said: "We play the world champions and the European champions. So if we beat them, we will be the world champions! AC can be really average in the championship but can raise their game on big occasions.

"That is something that is really surprising. They look invincible in Europe but beatable in Italy.

"They had an average championship even last year and this year again. We have to analyse what gets them there on the special occasion.

"If you pass the next round then of course you believe you can win it because you will have knocked the holders out — and why should we not believe we can do it? I still believe my squad can improve until the end of February and the beginning of March as well. So I am optimistic."

United manager Ferguson began this season intent on reaching the Champions League final for the first time since 1999 and believes that the fitness of his key players will be crucial.

His squad was depleted by injuries by the time they lost to Milan in last season's semifinal and the Scot is hoping that will not happen again.

He said: "Lyon are maybe the hardest of the five teams we could have got. They have won the French championship for the last seven years and that is quite an incredible record.

"It won't be an easy game but, hopefully by the time we get to it, we will have all our squad available. That is the prerequisite of the challenge, anyway.

"If that is the case, then I can pick the team I want and I think we will have a good chance. The important thing is to come back from France with a good result from the first leg.

"Hopefully, the volume level at Old Trafford will be really good for the home leg. It is an interesting tie and a close one to call."

Chelsea's reward for their good European campaign under coach Avram Grant is a tie against the Greek champions but the Israeli has warned against complacency.

He said: "If you think this looks easy on paper, it is still only on paper and it could be very difficult if we do not get a good result over there.

"We must not underestimate them and their supporters are fanatical for the team."

CHAMPIONS LEAGUE DRAW

Celtic v Barcelona

Lyon v Manchester United

Schalke v Porto

Liverpool v Inter

Roma v Real Madrid

Arsenal v Milan

Olympiakos v Chelsea

Fenerbahce v Sevilla