The Citizens, who beat Steaua Bucharest to reach the group stage, will also face Borussia Monchengladbach and Scottish champions Celtic in Group C of the competition.
Arsenal will also face a stern test, heading to France to face Unai Emery’s Paris Saint-Germain. The Gunners have enjoyed an otherwise relatively kind draw, though, with FC Basel and Bulgarian side Ludogorets the other opposition in Group A.
Premier League champions Leicester, who are making their debut in the competition, have managed to avoid the giants of Europe by being joined in Group G by Porto, Club Brugge, and FC Copenhagen.
Tottenham Hotspur, though, face a tough task to qualify after landing in a strong-looking group containing CSKA Moscow, Bayer Leverkusen, and Monaco.
Full Draw:Group A: PSG, Arsenal, Basel, Ludogorets Razgrad.
Group B: Benfica, Napoli, Dynamo Kiev, Besiktas.
Group C: Barcelona, Manchester City, Borussia Monchengladbach, Celtic.
Group D: Bayern Munich, Atletico Madrid, PSV Eindhoven, FC Rostov.
Group E: CSKA Moscow, Bayer Leverkusen, Tottenham Hotspur, Monaco.
Group F: Real Madrid, Borussia Dortmund, Sporting Lisbon, Legia Warsaw.
Group G: Leicester City, Porto, Club Brugge, FC Copenhagen.
Group H: Juventus, Sevilla, Lyon, Dinamo Zagreb.