Arsene Wenger will come up against his former club the in last 16 after Arsenal avoided the likes of Real Madrid and Bayern Munich in Monday's draw.
Monaco are down in sixth place in Ligue 1 and Arsenal will be favourites to advance to the quarter-finals ahead of the ties at the Emirates Stadium on February 27 and at Stade Louis II on March 17.
The principality club qualified as Group C winners, and although Miles knows the draw could have been far worse for the London club, he knows they could come unstuck if they are not at their best.
He told Sky Sports News: "As the draw came out, it was evident a lot of the big teams had gone, so we're pleased to have avoided them.
"But, we're delighted to be here in the knockout stages for the 17th consecutive season and we're very much looking forward to the games and a great atmosphere.
"We're certainly not taking anything for granted though against Monaco. It's the first time we've played them in a competitive match, so Arsene Wenger will be delighted to go back to one of his former clubs."
Wenger was at the helm at Monaco for seven years from 1987, winning the Ligue 1 title and the French Cup during his tenure.
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