Despite qualifying as last season's German Bundesliga champions, Dortmund were originally in Pot 4 due to their lack of recent activity in European competition, meaning it was likely they would be pitted against at least two equally strong sides.
However, after seeing his side pitted against Arsenal, Marseille and Olympiacos in Group F, Watzke admitted the draw had been kind to Dortmund.
"This is an exciting group, with great travels for our fans," Watzke said, at the conclusion of Thursday night's draw in Monaco.
"Overall in my view, this was a great draw [for Dortmund]."
Dortmund coach Jurgen Klopp was keen to stress the need to respect their opponents, but admitted he was confident of his side's qualifying prospects.
"We have been drawn against three great teams.
"I am very happy and excited and my expectations are huge."
Dortmund's opening Group F encounter will see them play hosts to Arsenal, before they have two consecutive away games against Marseille and Olympiacos.
Champions League Group Stage
|Group A||Group B||Group C||Group D|
|Bayern Munich||Trabzonspor||Manchester United||Olympique Lyonnais|
|Manchester City||LOSC Lille||FC Basle||Dinamo Zagreb|
|SSC Napoli||CSKA Moscow||Otelul Galati||Real Madrid|
|Group E||Group F||Group G||Group H|
|Valencia||Arsenal||Zenit St. petersburg||BATE Borisov|
|Bayer Leverkusen||Olympique Marseille||Shakhtar Donetsk||AC Milan|
|Racing Genk||Borussia Dortmund||APOEL||Viktoria Plzen|