Celtic have a �good chance� of qualifying for the knockout stages of the Champions League, according to the club�s chief executive Peter Lawwell, after they were drawn against Manchester United, Villarreal and Aalborg in Monte Carlo last night.

Celtic have a "good chance" of qualifying for the knockout stages of the Champions League, according to the club's chief executive Peter Lawwell, after they were drawn against Manchester United, Villarreal and Aalborg in Monte Carlo last night.

Lawwell said: "It's a formidable task to qualify, but I think we've got a good chance." He said he hoped that Celtic could strengthen the squad before the competition begins and added: "We are working on things. Time is obviously ticking against us, but who knows?"

Of Celtic's chances in Group E, he went on: "If we qualify three years running, it would be a remarkable achievement and I do genuinely believe we have a chance to do that. Overall, we are delighted. In Manchester United, we again welcome the European champions to Celtic Park.

"We remember the two epics we played two years ago at Old Trafford and the dramatic circumstances of the victory at Celtic Park. They were two great nights, so we are really looking forward to it.

"First and foremost, we are in this because it's the best football competition in the world and it's a privilege to be a part of that. The financials run alongside and are really important, but the privilege, the profile, the exposure that playing in this tournament gives you around the the world is fantastic."

Gordon Strachan, the Celtic manager, admitted he had an inkling that Celtic would once again be paired with Manchester United.

Strachan, who played for the Old Trafford side from 1984 to 1989, said: "We don't mess about at Celtic - we're in the competition, so we might as well play the holders of the Champions League. Last year, we drew AC Milan, who were holders, and then faced Barcelona in the last 16."

He added: "I had a funny feeling that we would get Man United. I was down south earlier in the week and I took in their game against Portsmouth. I just had a wee feeling when I was watching that game, so I suppose I got my scouting in early."

Strachan also highlighted the threat of Villarreal, who finished second in La Liga. "They are a first-class side. Sometimes you can meet teams with a lot of history, but who aren't up to much at present. Villarreal are making their own history now. They are a top side," he said.

Curiously, in the cosmopolitan world of the UEFA Champions League, three of the four teams in Celtic's group are managed by Scotsmen, the Celtic manager going head-to-head with compatriots in Sir Alex Ferguson at Old Trafford and Bruce Rioch at Danish club Aalborg.

"Aalborg will be a good side, that's for sure," said Strachan. "We played Copenhagen a few years back and we saw how good they were. If they can finish above them in the Danish league, Aalborg must be a good side."

He added: "It's exciting. It's another challenge for this group of players and it's one we relish. It's good that the supporters will get to see a few new teams this season."

John Reid, the Celtic chairman, said: "The people we were talking to before the draw were the United people, Villarreal and Aalborg, and we got the three of them there."

Celtic met United competitively for the first time in 2006/07, avenging a 3-2 defeat at Old Trafford with a 1-0 victory at Parkhead, which helped them reach the knockout phase for the first time. Japan midfielder Shunsuke Nakamura starred in both matches, scoring a stunning winner in the second game.

Reid said: "We pipped United the last time at Celtic Park, but there's no gainsaying the fact they're the European champions. They've got Cristiano Ronaldo, Alex Ferguson is a great manager ... but Gordon Strachan's been doing very, very well.

"We've managed to beat people like AC Milan, Benfica, Man United and get through twice in a row to the last 16, - wouldn't it be fabulous if we managed to do that again?"

Villarreal will also be familiar opponents for Celtic fans, the Spaniards beating Celtic 3-1 on aggregate in the quarter-finals of the UEFA Cup in 2004. They also ended Rangers' dreams of reaching the Champions League quarter-finals in 2006 on away goals.

Aalborg ultimately profited from Rangers' failure to reach the group phase. They beat Lithuanian side FBK Kaunas, who dismissed the Ibrox club in the previous qualifying round.