World Cup and European champions Spain have completed a full year atop the FIFA rankings, while five-time World Cup-winners Brazil has plummeted to No 18.
Meanwhile, New Zealand are up two places to No 91.
Brazil has dropped while playing only non-competitive matches, and failed to win last month.
Brazil lost against Argentina, who remain at No 3, and drew with Colombia, who are up to No 5.
The rankings weigh a four-year results cycle, and Brazil lost points from a 6-2 victory over Portugal in 2008.
Spain leads No 2 Germany, with European Championship finalist Italy at No 4. England is No 6, and Europe fills all places through Switzerland at No 12.
Ivory Coast is Africa's best at No 14. Mexico is No 15, and Japan leads Asia at No 22.
Who will win this year's Champions League?