Arsenal have been drawn to face Celtic in an all-British tie later this month to reach the Champions League group stage.

Celtic, following their victory over Dinamo Moscow earlier this week, face the daunting task of Arsene Wenger's men.

The first leg will be in the week after the Barclays Premier League starts.

It is the first time the two clubs will meet in European competition and the prize will be a path to the lucrative stage of the competition.

"They would have wanted to avoid each other," said former Celtic and Arsenal striker Charlie Nicholas.

"But Celtic fans would be happy because after their last two games they would fancy playing anyone. It was a very good performance in Russia.

"For Arsenal, the concern is the lack of players they've brought in and injuries. I think it will be very tight."