The four sides will line up in Group D, which has already been dubbed 'the group of death', and Butragueno feels the draw has been unkind to Los Blancos.
"We've had no luck, really, but the opponents will think the same," said Butrageuno.
"That is our objective [reaching the final at Wembley]. It is going to be a long journey, which will be very difficult. We have to think about this group and try to do our best to get through to the next round.
"Every game is going to be very important. Obviously, on paper the first two teams are favourites – Real Madrid and Manchester City. But, I have to disagree. We have to give our complete focus to every game."
The first round of fixtures will be played over September 18 and 19.