Barcelona will face Paris Saint-Germain in the Champions League quarter-finals, while Real Madrid take on Turkish giants Galatasaray.
The chance of Real meeting Barca in the final at Wembley remained alive when the Spanish giants were kept apart in Friday's draw.
Barcelona will face David Beckham's side PSG - he is the only English player left in the competition - while Real Madrid will take on Galatasaray, who have dangermen Didier Drogba, Wesley Sneijder and Burak Yilmaz among their ranks.
In the other two quarter-finals, Bayern Munich's reward for seeing off Arsenal is a meeting with Celtic's conquerors Juventus, while Borussia Dortmund will play Spanish side Malaga.
Unlike in previous seasons, UEFA did not also make the draw for the semi-final pairings at the same time - that will now take place next month.
Real Madrid head coach Jose Mourinho is aiming to become the first manager to win the Champions League with three different clubs, having achieved it previously with Porto and Inter Milan.
His side saw off Manchester United in the first knockout round and also qualified from a tough group comprising the domestic league champions of Spain, Germany, England and Holland.
Steve McManaman, the former Liverpool and Real midfielder who carried out the draw for UEFA, said: "Real have had to do it the hard way so far - they have beaten a lot of good teams."
Barcelona, who came from 2-0 down in the first leg of the last round to beat AC Milan 4-2 on aggregate, will come up against their former striker Zlatan Ibrahimovic.
Champions League quarter-final draw: Malaga v Borussia Dortmund, Real Madrid v Galatasaray, Paris Saint-Germain v Barcelona, Bayern Munich v Juventus.
The ties will take place on April 2/3 (1st legs) and April 9/10 (2nd legs).
