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If they get past the French giants the Arne Slot's side could face an all-English quarter-final against Aston Villa.
Arsenal will play PSV Eindhoven in the last 16 after a strong showing saw them comfortably finish inside the top eight to take the third seed.
They will also face a tough quarter-final, should they progress, with Real Madrid or Atletico Madrid awaiting them in the next round.
Aston Villa's reward for beating Bayern Munich, drawing with Juventus and dramatically beating Celtic to secure a shock top-eight finish is a two-legged tie against Club Brugge, who they have already met.
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Defending champions Real Madrid will face rivals Atletico Madrid after thrashing Manchester City 6-2 on aggregate in the play-off round, with Kylian Mbappe's hat-trick at the Bernabeu putting an exclamation mark on their progression.
There is an all-German tie between Bayer Leverkusen and Bayern Munich, who needed a play-off to reach this stage.
Borussia Dortmund take on Lille, while Feyenoord play Inter Milan.
Barcelona will play Benfica in another tasty-looking tie in the next round of the competition.
Full draw for the Champions League last 16
Club Brugge vs Aston Villa
Borussia Dortmund vs Lille
Real Madrid vs Atletico Madrid
Bayern Munich vs Bayer Leverkusen
PSV Eindhoven vs Arsenal
Feyenoord vs Inter Milan
Paris Saint-Germain vs Liverpool
Benfica vs Barcelona
Quarter-Finals
PSG or Liverpool vs Club Brugge or Aston Villa
PSV or Arsenal vs Real Madrid or Atletico Madrid
Benfica or Barcelona vs Borussia Dortmund or Lille
Bayern Munich or Bayer Leverkusen vs Feyenoord or Inter Milan
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