The North West's three sides in the Champions League have all been handed favourable draws in the group stages of the competition.
The draw was made in Monaco for the first round of matches, which will be played on September 12 and 13.
Manchester United, who qualified by winning the Europa League in May, were drawn in Group A alongside Benfica, Basle and CSKA Moscow.
Pep Guardiola's Manchester City will face Shakhtar Donetsk, Napoli and Feyenoord in Group F.
Five-time winners Liverpool, who advanced via the play-offs with victory over Hoffenheim, will play Spartak Moscow, Sevilla and Maribor in Group E.
Premier League champions Chelsea were drawn in Group C alongside Costa's former club Atletico, along with Roma and Qarabag, the first Azerbaijan side to reach the group stages.
Tottenham face the unenviable task of taking on holders Real Madrid and Borussia Dortmund in Group H, as well as Cyprus' APOEL.
Scottish champions Celtic, play-off winners over Kazakhstan's Astana, face an almost impossible task - they will content Group B with Bayern Munich, Paris St Germain and Anderlecht.
The final will be at the NSK Olimpiyskyi in Kiev on May 26, 2018.