Roberto Mancini's men have been drawn against the champions of Germany, Holland and Spain in the shape of Borussia Dortmund, Ajax and Real Madrid in the group stages
“Games like this are why you are in the Champions League. I thought it couldn’t get more difficult than last year but there you go," he told reporters.
Roberto Mancini's side face a tough task of escaping Group D to lift their maiden European Cup, having been drawn against Real Madrid, Borussia Dortmund & Ajax.
But, while the Belgian admits the group is harder than last year's draw - in which City failed to progress ahead of Bayern Munich, Villarreal & Napoli - he claims he is relishing the upcoming ties.
“It’s a great challenge. I think we are the sort of team which gets better as the challenges get even greater," Kompany said.
“It’s perfect for us. There won’t be any moments where we will be surprised. The motivation will be sky-high, the atmosphere great. I couldn’t think of a better way to play the Champions League.
“It’s all about how far you can get but it’s even nicer when you play against the best teams.”