FC Twente was paired with City, Schalke 04, Racing Santander and Paris Saint Germain in Group A.
“It’s a fantastic draw for the fans, for the club and for the players,” McClaren told Sky Sports News.
“It’s one of the toughest draws, but we’ve got a great draw and it’s very exciting.”
“I’ve just come back to England to catch up on football here, and the signings Man City have made are massive and they are expected to do very well. It should be a fantastic occasion for us,” added McClaren.
“We had a fantastic night last Thursday, beating Rennes (to reach the group phase). We’ve taken the club into an area which they have never been before, and hopefully things can only get better.
“We weren’t ready for Arsenal, that shows the gap. We are a young side, inexperienced, especially in Europe, but we will just enjoy it. It is about the future for these young players.
“To play against the likes of Schalke, Paris Saint Germain, Manchester City and Santander can only improve the club’s profile and improve the players.”