Manchester City remain firm favourites to win the Champions League after a favourable draw saw them paired with outsiders Schalke in the last 32.

City have seen their odds cut after being drawn out with Schalke, with Pep Guardiola’s men away in the first leg.

The three other English sides left in the competition at the first knockout stage, were handed somewhat tougher tasks.

Last season’s beaten finalists Liverpool face German champions Bayern Munich in what looks like the tie of the round.

Another mouthwatering clash sees Manchester United go up against French giants Paris Saint Germain.

Tottenham’s reward for winning through on the final matchday of the group stages, is a clash with in-form Borussia Dortmund.

Champions Real Madrid face Ajax, whilst Barcelona and Juventus – the two sides considered the biggest rivals to City – will face Lyon and Atletico Madrid, respectively.

The first legs will take place on 12-13 and 19-20 February, with the return fixtures on 5-6 and 12-13 March.

Group winners will be away from home in the first legs.

Draw in full:
Schalke v Manchester City
Atletico Madrid v Juventus
Manchester United v Paris St-Germain
Tottenham v Borussia Dortmund
Lyon v Barcelona
Roma v Porto
Ajax v Real Madrid
Liverpool v Bayern Munich

Bookmakers have moved to shorten City’s odds on the back of the draw. Pep Guardiola’s men are now just 11/4 to win (from 7/2).

Meanwhile, Liverpool’s odds of going one better than last year currently stand at 11/1, while Man United have drifted in the betting from 28/1 to 50/1.

Alex Apati of Ladbrokes said: “City have been gifted a dream knockout tie while Liverpool, Spurs and United have it all to do. It’s no surprise to see such a shake-up in the outright odds.”