After losing to Hoffenheim, they made the quarter-finals.
The quarter-finals of the Women's European Championship will feature a match between the two teams.
The first leg will be at home on 22 or 23 March, with the second leg on 30 or 31 March.
The winner will face either Real Madrid or Barcelona in the semi-finals.
Paris St-Germain will play against a team from Germany.
A five-goal defeat to Hoffenheim in their final group game would have eliminated them from the knockout stage.
In their final group game, Wolfsburg defeated last year's finalist, Chelsea, by a score of four to nil.
The only English side to have won the Women's European Championship is the one that did so in 2007, as well as two other times in the last three years.
The German side won the title after defeating the Gunners in the semi-finals.
The most likely outcome will be a semi-final between Barcelona and Real Madrid, with the Spanish side taking on a Real side making their debut in the competition.
The prospect of trying to get past seven-time winners Lyon is daunting.
The winner of that tie will play either German or French title holders.
There is a quarter-final draw.
Paris St-Germain vs.
Lyon vs. Juventus
The game is between the two teams, Arsenal and Wolfsburg.
Real Madrid plays Barcelona.
