The Gunners narrowly overcame Ostersunds in the second leg of their last-32 tie, with Sead Kolasinac's goal ensuring that, despite being beaten 2-1 on the night , they advanced through 4-2 on aggregate.
Milan, meanwhile, were comfortable winners over two legs as they claimed a 4-0 aggreage win over Ludogorets - Fabio Borini scoring the only goal of the night at San Siro in the return meeting on February 22.
Arsene Wenger's side last faced Milan in the Champions League back in 2012, with the Premier League side dumped out 4-3 on aggregate despite winning the second leg of that last-16 tie 3-0.
Laurent Koscielny is the only Arsenal player that still plays for the club since that last meeting - the French defender was even on the scoresheet that night, along with Tomas Rosicky and Robin van Persie.
Elsewhere in the draw, Dortmund will face RB Salzburg - the Bundesliga side advancing past Atalanta in a game marred by alleged racial chants aimed at on-loan striker Michy Batshuayi .
The ties will take place on the weeks of March 8 and March 15, with the quarter-final draw to follow on March 16 in Nyon.
Europa League last 16 draw in full
|Match||First Leg||Second Leg|
|Lazio vs Dynamo Kyiv||March 8||March 15|
|RB Leipzig vs Zenit||March 8||March 15|
|Atletico Madrid vs Lokomotiv Moscow||March 8||March 15|
|CSKA Moscow vs Lyon||March 8||March 15|
|Marseille vs Athletic Bilbao||March 8||March 15|
|Sporting CP vs Viktoria Plzen||March 8||March 15|
|Dortmund vs Salzburg||March 8||March 15|
|AC Milan vs Arsenal||March 8||March 15|
*Dates and times subject to change.