Champions League: Holders Real Madrid draw Schalke 04 in last 16 stage

(CNN) -- Champions League holders and arguably Europe's most in-form team Real Madrid were drawn against German side Schalke 04 in the last 16 of Europe's most prestigious competition.

Real, which defeated city rival Atletico Madrid 4-1 in Lisbon last year to win "La Decima" -- it's 10th title -- is attempting to become the first team to successfully defend the Champions League.

Two of England's three clubs face tough ties, with Chelsea drawn against Paris Saint-Germain and Manchester City paired with Spanish giants Barcelona.

Arsenal were arguably handed an easier route to the quarterfinals after drawing France's Monaco, which will see the London club's manager Arsene Wenger return to the team he managed for seven years between 1987 and 1994.

Last season's finalists Atletico will meet Bayer Leverkusen, while Italy's Juventus drew Borussia Dortmund, with Bayern Munich -- Germany's fourth club in the last 16 -- handed a draw against Shakhtar Donetsk.

Elsewhere Swiss side Basel will face Portugal's Porto.

On Friday Real Madrid extended their winning streak in all competitions to a remarkable 20 games with a 4-1 away win over Almeria.

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