FIFA announced their updated rankings on Thursday, just one week before Brazil open the 20th edition of the World Cup with a clash against Croatia in Sao Paulo.
Luiz Felipe Scolari's side move up one place, at the expense of Portugal, who had to qualify for the World Cup through a two-legged play-off against Sweden.
Argentina, another side tipped to challenge for World Cup glory, climb to fifth, while Switzerland are sixth, with Uruguay and Colombia dropping to seventh and eighth respectively.
England are back inside the top 10 at the expense of Greece, who slip to 12th, and Bosnia-Herzegovina move from 25th to 21st ahead of their first ever World Cup appearance.
Ukraine – the highest-ranked team not to feature in Brazil – are up one place to 16th.
More movement in the top 30 sees Scotland drop five places to 27th, while Costa Rica are up six spots to 28th.
Sierra Leone rise 17 spots to 54th, but Australia, the lowest-ranked team at the World Cup, lose further ground, slipping down three places.
Ange Postecoglou's men now sit 62nd in the world rankings, which are still headed by world champions Spain, and then Germany.
The biggest movers are Palestine, who shoot up 71 spots to 94th after their AFC Challenge Cup triumph in the Maldives.
As a result, Palestine qualified for the 2015 Asian Cup – the first major tournament they have reached since being accepted as a member by FIFA in 1998.
