The two clubs were paired in the draw for the last 16 of the UEFA Champions League in Nyon, with the ties taking place on 12 February and 6 March.
Nedved, who is now on the board at Juventus, played when the teams last met in the Champions League in 2001.
While the 40-year-old reckons Juventus are favourites to progress, he is expecting a tough test from Neil Lennon's men.
Nedved said: "It could have gone a lot worse, but we still need to face Celtic with great respect. They were the only team to beat Barcelona and have qualified for the next round with great credit.
"We're on a path of development, but many of our players are playing Champions League football for the first time in their careers and will need to be up to the challenge.
"We'll be stepping into a red-hot atmosphere and will encounter difficulties if we're fully up to speed. We need to match their intensity, hoping that our players have something extra on a technical level.
"Playing the return leg at home, in front of our public, certainly gives us a slight advantage. If we put in a Juventus style performance then we'll have a good chance of getting through to the next round."
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