Defending champion Barcelona will play Atletico Madrid in an all-Spanish quarterfinal in the Champions League.
Barcelona aims to be the first team to retain the title since the format was created 24 years ago, and Atletico would be the third straight different winner from Spain.
Real Madrid, which won its 10th European title in 2014, was drawn against Wolfsburg, which has never before played in the quarter finals.
Bayern Munich will face Benfica, and Paris Saint-Germain will play Manchester City.
The first legs of the quarter finals will be on April 5-6, with the second legs a week later on April 12-13.
Atletico ousted Barcelona in the 2014 quarter finals when it made a surprise run to the final.
Real Madrid trails its two big national rivals in the league this season, but got a favourable draw on Friday.
"Real is, of course, favourite in both legs but I think we will have two interesting matches," Wolfsburg director Klaus Allofs said.
Bayern, a five-time winner, will face Benfica, which won the last of its two titles more than 50 years ago.
"We can be happy with the draw, but we should not make the mistake of underestimating a team that's in the quarterfinal," Bayern chairman Karl-Heinz Rummenigge said.
PSG was paired with Man City in a contest of two big-spending clubs striving to join the European elite. Neither has reached a European Cup or Champions League final. The final is scheduled for May 28 in Milan.