City were the only English side to top their group, and as a result, have been handed an easier tie in the last 16, and will fancy their chances of heading to the quarter-finals for a second successive season.
A fixture with little history
Possibly unsurprisingly, this fixture is one with little history - the sides have only met three times in the past.
The Citizens first met the German side in 1970, losing 1-0 away before winning 5-1 at home, and then again faced each other in 2008 in the UEFA Cup, when City defeated Die Konigsblauen (The Royal Blues) 2-0, giving them the historical edge over their last 16 opponents.
Despite this, Pep Guardiola will know a little more about his opposition from his time facing them whilst manager of Bayern Munich.
It may be just under two months until the first leg of the encounter, although if form so far this season is anything to go by, this fixture could prove a walk in the park for Guardiola's side.
City currently sit second in the Premier League, and for the most part have been relentless both home and away, in all competitions.
As for Schalke, a not so successful season so far. The Germans sit 13th in the Bundesliga, having won just four of their 15 fixtures in the league so far.
The fact that the second leg will be played at the Etihad possibly gives City an extra edge, and it is undoubted that Guardiola will be thankful of an easier draw, avoiding the likes of Atletico Madrid, whilst being quietly confident of progressing to the last eight.