Ray Houghton believes Manchester City can topple Barcelona in the Champions League after the teams were paired in today’s draw for the Round of 16.

City will meet the competition winners of 2009 and 2011, but having won away to Bayern Munich on the way to reaching this stage, there are hopes they are acclimatising to European competition.

Houghton told RTÉ: “There is no doubt they are capable of winning, particularly with the first game being at the Ethiad. That is a huge advantage to Manchester City because their form at home has been excellent.

“The only poor game they have had at home was when Bayern Munich went there and actually won quite convincingly.

“Manchester City are playing extremely well.There are some good signs for Manchester City with Vincent Kompany coming back to fitness, plus that he will have a lot more game between now and the first fixture. It is an exciting fixture.”

City’s rivals, Manchester United, have been handed a much more favourable draw against Olympiakos of Greece.

Houghton thinks it was the ideal match-up for United.

He said: “You couldn't have picked a better draw to be honest.

“That is not being disrespect to Olympiakos. When you look at the teams United could have got, they were probably the weakest of the teams that were there.

“It shows you how important it is to win the group. You look at who Manchester United have got and Chelsea with Galatasary.

“I do genuinely believe Chelsea and Manchester United should get through to the last eight.”

The first legs will be played on February 18-19 and 25-26 with the return fixtures scheduled for March 11-12 and 18-19.

The final takes place at Benfica's Estadio da Luz on May 24.

Champions League last-16 draw: 

Manchester City v FC Barcelona

Olympiacos v Manchester United

AC Milan v Atletico Madrid

Bayer Leverkusen v Paris Saint-Germain

Galatasaray v Chelsea

FC Schalke v Real Madrid

Zenit St Petersburg v Borussia Dortmund

Bayern Munich v Arsenal