Liverpool will meet Juventus in the quarter-finals of the Champions League after the draw for the rest of the competition was made in Switzerland.
Chelsea face Bayern Munich in the last eight after the German giants beat Arsenal in the first knockout round.
The two remaining Premiership sides will meet in the semi-finals should they progress to the next stage.
Both English sides are at home in the first legs which take place on 5/6 April, with the returns a week later.
AC Milan have been drawn with city rivals Inter Milan in a repeat of the 2003 semi-final, which AC Milan won on away goals. Both ties will be played at the San Siro.
French league leaders Lyon will entertain Dutch side PSV Eindhoven in the first leg in the other quarter-final tie.
Chelsea chief executive Peter Kenyon admits they face a tough task against Bayern.
"It is a big draw, there are no easy games at this stage. We must give respect to Bayern as they have won it four times," said Kenyon.
"Our scouting network has been looking at all our potential opponents so we will be fully briefed before the games.
"I don't think Jose Mourinho will be concerned by playing at home first."
Liverpool chief executive Rick Parry says it will be an emotional time for both the Reds and Juventus as they meet for the first time since the Heysel tragedy in 1985.
Juventus won the European Cup with a 1-0 win in Belgium, but 39 Juve fans died after fighting broke out and a stadium wall collapsed.
CHAMPIONS LEAGUE ODDS
AC Milan 100-30
Bayern Munich 7-1
Inter Milan 8-1
PSV Eindhoven 20-1
Source: William Hill
"There is quite a a deep friendship between the clubs and I think between the two sets of fans," said Parry.
"It's of course 20 years since Heysel so we've already mentioned that and something we have give thought to.
"I'm confident we'll get it right. It's something we'll think about carefully."
Manager Rafael Benitez knows his side face a stern test as they take on the Serie A giants.
"Italian teams are always tough to play against and you always know you will be in for a difficult game," said Benitez.
"It is a tough draw but I'm confident we can do well in the tie."
Juventus coach Fabio Capello added: "We will have to play that game, remembering what happened 20 years ago, and make sure the spirit of football is not forgotten this time."
Rogan Taylor, from the Liverpool University Football Research Unit, told BBC Radio Merseyside it gives the city an opportunity to pay their respects to the fans that died in Brussels.
"I think the city should do something. It is something I think the city would like to forget for a lot of natural human reasons but its certainly something we shouldn't forget," said Taylor.
Champions League quarter-finals draw:
LIVERPOOL v Juventus
AC Milan v Inter Milan
Lyon v PSV Eindhoven
CHELSEA v Bayern Munich
The first legs will take place on 5/6 April with the returns a week later.
CHELSEA/Bayern Munich v LIVERPOOL/Juventus
AC Milan/Inter Milan v Lyon/PSV Eindhoven
The first legs will take place on 26/27 April with the returns a week later.
The final is to be played on 25 May at the Ataturk Stadium in Istanbul, Turkey.