Borussia Dortmund head coach Peter Bosz acknowledged Champions League titleholders Real Madrid are the greatest test in football at the moment but he is ready for the challenge.

There was a sense of déjà vu during Thursday's Champions League draw as Dortmund and Madrid were drawn together again in Group H.

Dortmund and Madrid shared a pair of 2-2 draws in the group stage last season – Zinedine Zidane's men finishing runners-up before going on to claim back-to-back Champions League titles.

Bosz – who replaced Thomas Tuchel in the off-season – is braced for the challenge ahead, which also includes Tottenham and APOEL.

"I watched Real's recent matches against Barcelona and I must admit: This is the absolute highest level in football at the moment. We accept this challenge," Bosz said.

Dortmund CEO Hans-Joachim Watzke added: "It is the toughest group, very challenging. In these groups is where heroes are born.

"We go for it. [In] 2012 we progressed [from a similar difficult group]."

Meanwhile, director of football Michael Zorc is ready to battle it out with Tottenham for the second qualifying spot.

"Real Madrid are the clear favourite. I consider us as on the same level as Tottenham," he said.