Several clubs played in the qualifying round in the fall of 1985, with the final tournament being held in Jeddah, Saudi Arabia, from 19 to 29 January 1986.

South Korean side Daewoo Royals won their first Asian Club Championship defeating Al-Ahli in the final.

Note: Al-Ahli Sana'a and Al-Shorta Aden both withdrew before the draw, while the Lebanese FA did not send a team.

Both legs were played in South Korea as Macau did not have an AFC or FIFA-standard stadium.

Daewoo Royals won 14–1 on aggregate and qualified to the Group stage Note: As Seiko withdrew from the final tournament, playoff runners up Krama Yudha Tiga Berlian, took their place.