Holders Chelsea will play Real Madrid in the Champions League quarter-finals and could meet Manchester City in the last four of the competition.

City were paired with Atletico Madrid – round of 16 conquerors of Manchester United on Tuesday – while Liverpool were drawn against Benfica.

Villarreal will play Bayern Munich in the remaining quarter-final.

Chelsea manager Thomas Tuchel said after being pitted against record 13-time European champions Real: “The challenge cannot be much higher than playing the second leg in the Bernabeu, with spectators.

“It’s a big challenge, but it’s also a big excitement around this fixture. We know what’s coming.”

On avoiding English rivals City and Liverpool, Tuchel added: “Not important, but it’s European nights, and it’s always nice to play European teams.

“Maybe not at this kind of stage (you don’t want to play) the teams you play already so many times in domestic competition.”

As it stands, Chelsea will not be able to sell tickets for Champions League ties due to the UK and now EU sanctions against owner Roman Abramovich following Russia’s invasion of Ukraine.

However, that would change immediately if a sale of the club could be completed in time, and Chelsea are in dialogue with UEFA over changes to the licence as well as the UK Government.

Tuchel said: “It would be a disadvantage, but, listen, in general this game is for the spectators, the game changes so much with spectators. So hopefully we’ll find solutions.

“I’m pretty sure everybody at the club and the board will fight for a chance.

“I don’t know how big the possibility is, but the games are for the spectators and especially these games.

“It’s a different game when the crowds are in the stadium, so hopefully we can make it happen somehow.

“But we also have to respect that we are in this situation and have to adapt to whatever comes.”

The draw made at UEFA headquarters in Nyon means Chelsea, who beat City in the final last May to win the trophy for the second time, will have a last-eight reunion with former manager Carlo Ancelotti.

Chelsea were drawn to play the first leg at Stamford Bridge but the tie will be reversed.

The two Madrid teams cannot be at home in the same leg and, as Atletico qualified as Spanish champions their tie is set to remain as drawn.

The draw for the semi-final was also conducted in Nyon, throwing up possibilities of a repeat of last season’s clash between Chelsea and Manchester City and an all-Madrid affair.

Chelsea beat City 1-0 in the 2021 final at Porto’s Estadio do Dragao with Kai Havertz scoring the winner.

City boss Pep Guardiola says he is not contemplating a possible semi-final against Chelsea ahead of playing Diego Simeone’s Atletico, who were Champions League finalists in 2014.

Guardiola said: “At this stage, the best eight teams in Europe, I think all draws are difficult and, yeah, we go back to Madrid.

“We have work to do against Atletico Madrid to think about the next (semi-final) round.”

Benfica or Liverpool – who knocked out Inter Milan 2-1 on aggregate in the round of 16 – will play Villarreal or Bayern in the other semi-final.

The quarter-final ties will take place on April 5-6 and 12-13, with the semi-finals scheduled for April 26-27 and May 3-4.

The Stade de France in Paris will host the final on May 28 after the game was moved from St Petersburg following Russia’s invasion of Ukraine