Real Madrid and City will meet in the round of 16 next month.
It will be the sixth consecutive season that the two giants have met in the competition.
Butragueno stated after the draw: "It's funny that we play them every season. We know each other very well. They have a great team, a great squad that gives (Pep) Guardiola plenty of options.
"We play the first leg at the Bernabéu, and we need to get a good result to defend it in Manchester. They're always attacking matches, with two teams that want to dominate, and plenty of goals. It's one of the best matches you can see.
"We have some important players injured; we hope they recover because we need them all. We have complete faith in our players to get through the tie."
