Meanwhile, beaten finalists Italy – who broke English hearts when they eliminated the Three Lions on penalties – go up six places to sixth.
Brazil have fallen out of the top 10 for the first time since the rankings were introduced in 1993 and now sit in 11th spot.
Germany is up a place in second while Portugal sits in fifth.
The Fifa world rankings are compiled every month, with ranking points accumulated according to results, the importance of the matches played and the strength of opposing teams.
Australia is up one to number 23, while New Zealand has jumped five places and is now ranked 95th.
Fifa world rankings – top 20
1. Spain
2. Germany
3. Uruguay
4. England
5. Portugal
6. Italy
7. Argentina
8. Netherlands
9. Croatia
10. Denmark
11. Brazil
12. Greece
13. Russia
14. France
15. Chile
16. Ivory Coast
17. Sweden
18. Czech Republic
19. Mexico
20. Japan
