World Cup winners France take over at the top while Germany drop to 15th after their group stage exit in Russia – having been top of the tree going into the tournament.
Belgium lost 1-0 to France in the semi-finals and are just three points behind them in the rankings – while Brazil drop to third following their quarter-final loss.
Beaten finalists Croatia ended England’s run in Russia, and they are fourth in the new list having climbed 16 spots.
Uruguay lost to eventual winners France in the quarter-finals and the fifth-ranked South Americans are the only other team ranked higher than England.
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Reigning European champions Portugal are seventh, and Switzerland, Spain and Denmark complete the top 10 – with the latter two nations joint-ninth.
Argentina drop six places to 11th but Russia are the biggest climbers, having risen 21 spots to 49th.
The hosts were not fancied heading into the World Cup but won their first two games to reach the last 16 before stunning Spain on penalties to reach the last eight, where they lost to Croatia after another shootout.
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Wales have fallen one spot to 19th, with Northern Ireland up two places to 27th.
The Republic of Ireland and Scotland also went up two spots to 29th and 40th respectively.