The two European powerhouses were placed in Group A in the draw that took place in Monaco. Werder Bremen and Levski Sofia were the other two teams drawn to Group A.

Chelsea had eliminated Barcelona from the first knockout round stage in the 2004-2005 but the Catalans avenged their defeat by routing the Blues in the quarter-finals last season.

Inter Milan were also drawn to a tough B that includes Bayern Munich, Sporting Lisbon and Spartak Moscow while city-rivals AC Milan face an easier task in Group H.

AC Milan will face Lille of France, AEK Athens and Anderlecht.

Meanwhile, Real Madrid will renew their engagement with French champions Lyon in Group E that also includes Dynamo Kiev and Steaua Bucharest.

Former champions Liverpool will also face tough challenges in their Group C as they take on PSV Eindhoven, Bordeaux and Galatasaray.

Draw for the 2006-2007 UEFA Champions League:

Group A: Barcelona, Chelsea, Werder Bremen, Levski Sofia

Group B: Inter Milan, Bayern Munich, Sporting Lisbon, Spartak Moscow

Group C: Liverpool, PSV Eindhoven, Bordeaux, Galatasaray

Group D: Valencia, AS Roma, Olympiakos, Shakhtar Donetsk

Group E: Real Madrid, Olympique Lyon, Steaua Bucharest, Dynamo Kiev

Group F: Manchester United, Celtic, Benfica, FC Copenhagen

Group G: Arsenal, FC Porto, CSKA Moscow, Hamburg

Group H: AC Milan, Lille, AEK Athens, Anderlecht