Los Blancos endured an underwhelming group campaign this season, losing twice to Shakhtar Donetsk and qualifying on the final day with a win over Borussia Monchengladbach.
Zidane’s were handed a slightly favourable last 16 draw against Atalanta, progressing with a 4-1 aggregate win and the Frenchman is expecting Liverpool to pose another tough test.
‘We know the difficulties of the game,’ Zidane said. ‘At this level all the teams are very good, very difficult.
‘It will be a very demanding match. We know this team, physically they will demand many more things from you.’
Real and Liverpool last met in the 2018 Champions League final with Gareth Bale scoring an outrageous bicycle kick to help the Spanish side to a 3-1 win.
On the draw, Klopp said: ‘It’s exciting, exciting. It’s obviously a tough draw but I am fine with it because if you look at all the other teams you think, ‘Oh my god’ because they are all strong and all have quality, that’s clear. I am really looking forward to the games.
With their Premier League title defence long over and having been eliminated from the FA Cup at the third round stage in January, Liverpool can focus on the Champions League in the remaining months of the season.
The Reds currently sit in sixth place in the English top flight, five points off fourth place.
Real Madrid meanwhile remain in the race for the Spanish title. The club currently sit in third place but have narrowed the gap on league leaders Atletico Madrid to six points.