City will face Lionel Messi's Paris Saint-Germain, RB Leipzig and Club Brugge in Group A as the Premier League champions look to end their European drought.
City kick off their campaign by hosting Leipzig on Wednesday, September 15.
Meanwhile, Liverpool will go up against Spanish champions Atletico Madrid, Porto and AC Milan in a difficult Group B.
The Reds face old European foes Milan in their opener, also on Wednesday.
The draw was kinder to holders Chelsea and Cristiano Ronaldo's Manchester United, who will both be confident of reaching the knockout stages.
United face a repeat of last season's Europa League final with Villarreal, alongside Atalanta and Young Boys in Group F.
Ronaldo and co take on the Swiss side in their first tie on Tuesday, September 14.
Chelsea, meanwhile, will go up against Juventus, Zenit St Petersburg and Malmo in Group H and kick off their title defence on Tuesday by hosting the Russians.
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TUESDAY 14th SEPTEMBER
Young Boys v Manchester United - 17:45 - talkSPORT 2
Chelsea v Zenit - 20:00 - talkSPORT
Barcelona v Bayern Munich - 20:00 - talkSPORT 2
WEDNESDAY 15th SEPTEMBER
Inter Milan v Real Madrid - 20:00 - talkSPORT 2
THURSDAY 16th SEPTEMBER
Dinamo Zagreb v West Ham - 17:45 - talkSPORT 2
SATURDAY 18th SEPTEMBER
Wolves v Brentford - 12:30 - talkSPORT EXCLUSIVE
Hull v Sheffield United - 12:30 - talkSPORT 2 EXCLUSIVE
Liverpool v Crystal Palace - 15:00 - talkSPORT 2 EXCLUSIVE
Aston Villa v Everton - 17:30 - talkSPORT EXCLUSIVE
City convincingly beat PSG in the semi-finals last season but the French giants are set to be a totally different outfit this term having signed the likes of Gianluigi Donnarumma, Sergio Ramos and the great Messi.
Liverpool have previous against all their group opponents.
They were knocked out of the 2019/20 competition by Atletico, beat Porto in the knockout stage for two years running (2017/18 and 2018/19) and beat Milan in an incredible 2005 final.
Below you can see the 2021/22 Champions League group stage draw in full…
Champions League group stage draw
Group A: Manchester City, Paris Saint-Germain, RB Leipzig, Club Brugge
Group B: Atletico Madrid, Liverpool, Porto, AC Milan
Group C: Sporting Lisbon, Borussia Dortmund, Ajax, Besiktas
Group D: Inter Milan, Real Madrid, Shakhtar Donetsk, Dynamo Kiev
Group E: Bayern Munich, Barcelona, Benfica, FC Sheriff
Group F: Villarreal, Manchester United, Atalanta, Young Boys
Group G: Lille, Sevilla, FC Salzburg, Wolfsburg
Group H: Chelsea, Juventus, Zenit St Petersburg, Malmo
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