
World champions Italy, who occupied first place last month, slipped down to third as Brazil also overtook the Europeans.
Both South American countries benefited from a good start to the World Cup qualifying campaign.
FIFA said that the other changes in the top ten and the places just outside it are a reflection of the results of EURO 2008 qualifiers.
"France (4th, up 2) and Spain (6th, up 1) have moved up the ladder while Germany (5th, down 1) and the Netherlands (7th, down 2) have paid for defeat by dropping down a notch.
"The 3-0 victory chalked up by the Czech Republic (9th, up 2) in Germany has put them back in the top ten, ousting England (11th, down 2) in the process," FIFA said in a statement.
Scotland, who moved to 13th in the world, are enjoying their best- ever place since the ranking started in 1993, while Greece, who are moved upwards one place, are 14th.
England's conquerors, Russia (16th, up 10), count as one of the big movers, having regained the territory they last occupied some ten years ago.