Holders Real Madrid will face Borussia Dortmund and Tottenham Hotspur in the Champions League group stage while five-time winners Barcelona were drawn with last season's runners-up Juventus on Thursday.
Zinedine Zidane's side are chasing a third successive European title and fourth in five seasons after demolishing Italian champions Juventus 4-1 in Cardiff in June.
The record 12-time European champions also take on APOEL of Cyprus in a testing Group H that will see Gareth Bale face Spurs for the first time since leaving for Real in a then world record deal in 2013.
"We are the holders so there is always an extra motivation for the teams you face. It won't be easy at all, we'll need to play well and find our best form," said Real spokesman and former striker Emilio Butragueno.
"We've played a lot of times against Borussia Dortmund recently and know how good they are. Tottenham have shown in the past years in the Premier League they are a very strong team."
Tottenham forward Harry Kane said he was excited to line up against the defending champions.
"It’s a great draw. You expect to play the best in Europe in the Champions League and it’s exciting for us. We look forward to these games. You want to test yourself against the best and Real Madrid are the best at the moment," said Kane.
Barcelona beat Juventus 3-1 in the 2015 final but the Spanish club have endured a difficult month with Neymar departing for Paris Saint-Germain in a mammoth 222-million-euro ($261 million) deal.
They will also come up against Greek champions Olympiakos and Sporting Lisbon in a competitive Group D.
"It is a high level group with four historic teams. We will be fighting against a well known rival in Juventus and the games against them will condition our chances in the group," said Barca general manager Pep Segura.
Juventus director general Beppe Marotta said Barca were a weaker side following the record-breaking sale of Neymar.
"Missing a player like Neymar weighs heavily. We'll have to see how they intend to replace him. But Barcelona remain a top quality side with great individual players," Marotta told Italia 1.
Bayern Munich coach Carlo Ancelotti will be reacquainted with old faces in Paris in a Group B that also features Celtic and Anderlecht.
"It’s an exciting group with some great teams and Paris at the top," said the Italian.
"It's a nice story for me to meet my former club again. As everybody knows, Celtic get incredible support from their fans. And Anderlecht can not be underestimated as Belgian champions."
PSG coach Unai Emery, looking to mastermind a much deeper run after last year's spectacular collapse against Barca, expects his side to join Bayern in the last 16.
"Bayern Munich are a very strong side. We will be the two favourites. After there are two teams who are going to want to create a surprise," said Emery.
Chelsea, one of a record five English teams to qualify for the group phase, will meet Atletico Madrid in Group C as well as Roma and Qarabag, the first side from Azerbaijan to reach this stage of the competition.
Jose Mourinho will return to Portugal with Manchester United after his team was placed in Group A with Benfica, CSKA Moscow and Basel.
Pep Guardiola's Manchester City are in Group F alongside Ukrainian champions Shakhtar Donetsk, Napoli and Feyenoord while Liverpool will play Spartak Moscow, Sevilla and Maribor in Group E.
"There are groups with Barcelona, Bayern, Juventus and Real Madrid, and not to get them is of course more good than bad," said Klopp.
French champions Monaco, who reached last season's semi-finals, face Porto, Besiktas and debutants RB Leipzig in Group G.
The opening round of matches will be played September 12-13.