The Gunners will also face Olympiakos and Dinamo Zagreb as they look to plot a way through to the knockout stages for the 14th consecutive season.
Meanwhile, Manchester United will take on PSV, CSKA Moscow and Wolfsburg while Premier League champion Chelsea faces Jose Mourinho's former side Porto, Dynamo Kiev and Maccabi Tel-Aviv.
Manchester City will take on Juventus, Europa League champion Sevilla and Borussia Monchengladbach, while reigning champion Barcelona faces Bayer Leverkusen, Roma and BATE Borisov.
Real Madrid, meanwhile, has been drawn alongside Paris Saint-Germain, Shakhtar Donetsk and Malmo.
Arsenal's clash with Pep Guardiola's side will see the north London outfit again take on German opposition having faced Borussia Dortmund in three of the past four seasons.
United, meanwhile, takes on Dutch champions PSV, which will see Memphis Depay return to the club that he helped to Eredivisie glory while City will be looking to win the group for the first time ahead of last season's runner-up Juventus.
Group A sees Real Madrid take on Ligue 1 champion PSG in one of the round's glamor ties while Zlatan Ibrahimovic will return to boyhood club Malmo.
In the two other groups, Atletico Madrid will take on Benfica, Galatasaray and debutant Astana while Valencia faces Zenit, Lyon and Gent.