The Premier League champions are the only English side remaining in Europe's elite competition after Man City went out to Monaco and face a tough task against Diego Simeone's men, with the first leg taking place at the Vicente Calderon.
While Atletico will undobtedly be the favourites over two legs at 1/6, if Leicester can secure a positive result in Spain the signs would be could for Craig Shakespeare's team, as Leicester are one of only three teams, along with Barcelona and Bayern Munich to win all four of their home mathces in this season's competition.
The first legs will be on Tuesday 11th and Wednesday 12th April, with the returns on 18th and 19th April.
Elsewhere in the draw, Monaco have been rewarded with a tie against Borussia Dortmund after defeating Man City in the last sixteen. The other two ties see four heavyweights of Europe go up against each other, with Barcelona drawing Juventus and defending champions Real Madrid taking on Bayern Munich.