England and the rest of the home nations failed to qualify for Euro 2008, a tournament won by a gifted Spain squad.
They shed their tag as perennial underachievers when they swept all before them at the European Championship in Austria and Switzerland - winning every tie attractively and outplaying Germany when winning the final 1-0.
Barcelona midfielder Xavi was named the tournament's best player and was one of nine members of the Spain squad selected among a team of 23 by a panel of Uefa technical experts.
Germany, as a consequence of their progress in the tournament, have moved up two places to third position behind Italy, who have risen one spot, despite going out of the tournament at the quarter-final stage.
Greece, European champions in 2004, suffered a big drop - from eighth to 18th - after failing to make it out of the group stages this time around.
Russia's surprise run to the semi-finals resulted in them surging 13 places to 11th, their best ranking in more than 10 years.
The ranking system is based on international results over the past four years, with more points awarded for wins in major tournaments.
FIFA RANKINGS (previous position in brackets):
1. (4) Spain
2. (3) Italy
3. (5) Germany
4. (2) Brazil
5. (10) Netherlands
6. (1) Argentina
7. (15) Croatia
8. (6) Czech Republic
9. (11) Portugal
10. (7) France
11. (24) Russia
12. (12) Romania
13. (13) Cameroon
14. (20) Turkey
15. (9) England
16. (17) Scotland
17. (18) Bulgaria
18. (8) Greece
19. (14) Mexico
20. (16) Ghana
33. (32) Northern Ireland
41. (42) Republic of Ireland
54. (53) Wales