Real thrashed Premier League champions Manchester City 6-3 on aggregate in the playoffs and the 15-times winners will now make the trip across town to face Atletico, the side they beat in the 2014 and 2016 finals.
Real and Atletico are separated by a point in LaLiga and the two sides played out 1-1 draws in the league this season.
Atletico boss Diego Simeone said: "I m going to answer just one question (on Real)... We have a great rival. We re going to have a great game and we re prepared."
Bayern, having last won the trophy in 2020, take on Leverkusen, who pipped them to the Bundesliga title last season. The Bavarians lead Xabi Alonso s side by eight points this term after they drew 0-0 last weekend.
"We know that we have the quality to beat Bayern. And I think Bayern know that too," said Simon Rolfes, Leverkusen s managing director of sport. "But we still have great respect for Bayern because they are a top team."
Liverpool, who like Bayern have been European champions six times and topped the group stage table, travel to in-form Paris St Germain for the first leg after the French side humiliated Brest with a 10-0 aggregate win in the playoffs.
Liverpool boss Arne Slot will have one eye on his side s League Cup final against Newcastle United, which will be played on the Sunday after the second leg against PSG.
BARCA FACE BENFICA AGAIN
Five-times winners Barcelona meet Benfica again, having faced them in a chaotic group stage match last month which they won 5-4 with Raphinha s winner in the sixth minute of added time and the Catalans coach Hansi Flick expects a tough contest.
"I think it will be a difficult match. They are doing very well and we already saw that they did a lot of damage to us," Flick said.
Arsenal, who are struggling with an injury crisis that has left them without a recognised striker, have been drawn against Eredivisie title challengers PSV Eindhoven - a team they beat 4-0 in the group stage last season.
"We ve played against them, they are a really good team. We have experienced it and it will be really difficult," Arsenal boss Mikel Arteta said.
"We know what we are facing. When you are at this stage every team is really, really good. When the time comes we will be ready for it."
Former European champions Aston Villa, having last played in the knockout stage in 1983, have been drawn against Club Brugge, who beat Unai Emery s side in the group stage.
With the quarter-final and semi-final draws also set, Liverpool could play fellow Premier League side Villa in the next round.
Emery, a European competition specialist who has won four Europa League titles, may even face his former club PSG.
Last year s finalists Borussia Dortmund play Lille while Feyenoord, the second Dutch side to go through, take on 2023 runners-up Inter Milan.
Inter are the only Italian team left in the competition after AC Milan, Juventus and Atalanta crashed out in the playoffs.
