The 35-year-old Serb, who is also bidding for a 22nd major title which would equal Nadal’s men’s record, has only lost one of his past 25 matches.
Seeded fourth, Djokovic would not face Nadal until the final – but could face home favourite Nick Kyrgios in the quarter-finals.
In the women’s draw, world number one Iga Swiatek, who reached the semi-finals last year, starts against Germany’s recent Wimbledon quarter-finalist Jule Niemeier.
Another eye-catching draw sees Belarusian Victoria Azarenka and American Sofia Kenin – both former champions – meet in the first round.
Britain’s Emma Raducanu, who has been struggling with an ankle injury, has been drawn against Germany’s Tamara Korpatsch.
The 20 year-old Raducanu could face seventh seed Coco Gauff as early as in the second round.
The Australian Open, which is the first Grand Slam tournament of the new season, takes place at Melbourne Park between 16 and 29 January.