The two sides met at the same stage of the competition last season, with the Londoners close to becoming the first side to overhaul a two-goal first-leg deficit away from home with a 2-0 win in Bavaria, though die Roten progressed on away goals with the score locked 3-3 on aggregate.
Speaking ahead of his side's game at the Emirates Stadium in midweek, Lahm stressed that the encounter will be difficult for Bayern to navigate with Arsenal a much-improved outfit.
"The biggest danger for us, right now, is facing Arsenal in the last 16," the 30-year-old German told The Guardian newspaper.
"It's a tough draw. A lot can happen in those two games. It'll be two teams that are very good tactically and technically. I'm really looking forward to that game. I think every football fan is.
"I follow Arsenal a bit more this year and they've left a good impression.
"They're fighting for the championship, that's not a coincidence: I believe they have developed as a team. They've become much stronger, the squad is more balanced.
"And they still play the way Arsenal always play. They want to have the ball, they like playing it short, and they have outstanding individuals."The Bavarians lead the Bundesliga by 16 points from second-placed Bayer Leverkusen after their 4-0 win over Freiburg on Saturday, but Lahm indicated that there will be no complacency in Pep Guardiola's side's quest for further success.
"This team didn't just happen to win the treble," the defender continued, referring to last season's exploits.
"It was a lengthy road. We lost two Champions League finals in 2010 [2-0 against Inter] and 2012 [on penalties against Chelsea], we were only champions once in three years. We know full where we have come from and how hard it has been to get to that point.
"It's not in this team's character to give all that up again, to simply throw it away. We have experienced getting rewarded for hard work and are hungry to do so again."