Jose Mourinho's men drawing the Red Devils has seen their odds to win the tounament lengthen, while Arsenal are now 33/1 after being paired with Bayern MunichBarcelona were handed a favourable draw in the Champions League as they aim to secure a third title in five years, with the Catalan giants set to face AC Milan.
They are now 21/10 (3.10) to win the tournament having been available to back at 11/4 following the conclusion of the group stages, no doubt due to some very tough fixtures for some of the other fancied sides.
Milan are given virtually no hope of progressing to the quarter-finals following two games against the La Liga leaders. The Italian side are a massive 80/1 (81.0) for European glory.
|Champions League Winner
Real Madrid finished second in Group D and Jose Mourinho's men will have to negotiate a two-legged tie against United if they are to progress - a clash that will see Cristiano Ronaldo face his former side. The reigning Spanish champions have been pushed out from 7/2 (4.50) to 4/1 (5.0).
Arsenal meanwhile, were handed a tie with last season's beaten finalists Bayern Munich (7/1) and are now a best priced 33/1 (34.0) to win the competition.
The Gunners were one of the biggest movers in terms of odds following the draw, having previously been priced at 25/1 (26.0).
Chelsea were the first Champions League winners to have their defence ended in the group stage, missing out on qualification to Juventus, and Shakhtar Donetsk.
Celtic's reward for qualification under Neil Lennon is two games against Serie A champions Juventus. The Scottish side are still longshots at 100/1 (101.0) for victory while Juventus have seen their odds clipped from 14/1 (15.0) to 10/1 (11.0).
The surprise winners of the supposed Group of Death were Borussia Dortmund and they have been a paired with Shakhtar Donetsk in the last 16, a tie that has seen their odds move from 11/1 (12.0) to 13/2 (7.50).
Galatasaray were the first team to be drawn and they will face Schalke. Valencia will face Zlatan Ibrahimovic and Paris Saint-Germain while Porto take on Malaga in the last 16.
Champions League Last 16 ties in full
Galatasaray v Schalke
Celtic v Juventus
Arsenal v Bayern Munich:
Shakhtar Donetsk v Borussia Dortmund
AC Milan v Barcelona
Real Madrid v Manchester United
Valencia v Paris Saint-Germain
Porto v Malaga
Sign up with Paddy Power for £250 in free bets
Jim Knight is Betting Editor at Goal.com and has been tipping football games for several years. He is a Leicester City fan, writer and member of the We Are Going Up Podcast
Follow Jim on