World Cup and European champion Spain has completed a full year atop the FIFA rankings, and Brazil has plummeted to No 18.
The 2014 World Cup host has dropped while playing only non-competitive matches, and failed to win last month.
Brazil lost against Argentina, which remains at No 3, and drew with Colombia, which rises to No 5.
The rankings weigh a four-year results cycle, and Brazil dropped 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.