Brazil slumped to 11th, their lowest ever position, while tiny Tahiti surged 41 places after their astonishing win at the Oceania Nations Cup.
Performances at Euro 2012 had an impact on places, with winners Spain staying top, semi-finalists Germany moving up a spot to second and runners-up Italy jumped from 12th to sixth.
England's two group wins and draw with France moved them up to fourth in the rankings, equalling their best ever position, which has been achieved twice before – in December 1997 and September 2006.
Moving in the opposite direction, Netherlands slumped from fourth to eighth after their first-round exit at Euro 2012.
Brazil dropped out of the top 10 for the first time since the rankings began in 1993 following defeats to Mexico and Argentina in friendlies in the last month.
Under the complex system used to calculate the rankings, 2014 World Cup hosts Brazil have also suffered by having not played any competitive internationals since last year's Copa America when they went out in the quarter-finals.
Uruguay remained the highest-ranked South American side at third followed by Argentina in seventh. Africa's highest team are Ivory Coast in 16th.
Tahiti's shock win at the Oceania Nations Cup lifted them 41 places to 138th though they are still short of their record 111th ranking they achieved in 2002.
Rankings list (last month's position in brackets)
1. (1) Spain
2. (3) Germany
3. (2) Uruguay
4. (6) England
5. (10) Portugal
6. (12) Italy
7. (7) Argentina
8. (4) Netherlands
9. (8) Croatia
10. (9) Denmark