Stuart Baxter's Bafana side failed dismally to qualify for the 2018 sporting showpiece in Russian Federation, with the latest rankings being the first since a new ranking formula took effect.
Argentina fall to 11th after flattering to deceive on the grandest stage, with both teams now below England, who reached the semi-finals.
August's rankings are the first to use a new formula which "relies on adding/subtracting points won or lost for a game to/from the previous points total rather than averaging game points over a given time period as in the previous version of the ranking".
England takes 6th place, Portugal 7th, Switzerland 8th position, while Spain and Denmark are sitting in the 9th position.
The Super Eagles who recorded one win and lost two games at the 2018 FIFA World Cup in Russian Federation retains their position as the seventh best team in Africa.
Brazil, beaten by Belgium in the quarter-finals, fell one place down to third.
The defending World Cup champions entered the competition No. 1 in the rankings, but they failed to reach the knockout rounds and made their earliest exit from the tournament in 80 years.
Wales now occupy 19th place, with Northern Ireland in 27th - two places above the Republic of Ireland.
Wales are down one place to 19th while Scotland are up two to 40th.
Russia, who exceeded low expectations in their home tournament in making the quarter-finals, rise 21 spots to 49th.