Italy held on to fourth place in FIFA's latest monthly rankings despite a 1-0 defeat to Egypt and a 3-0 loss to Brazil in the recent Confederations Cup in South Africa.
Confederations Cup winners Brazil jumped four places to reclaim top spot from Spain.
The Netherlands dropped one place to third, Germany fell two to fifth and Russia gained three to sixth.
Confederations Cup runners-up USA only gained two spots to 12th despite their shock win over European champions Spain.
African champions Egypt also only rose two places, to 38th, despite their historic win over the world champions.
Fabio Capello's England dropped a place to seventh. Here's the Top Ten (last month's position in brackets)
1. Brazil (5)
2. Spain (1)
3. Netherlands (2)
4. Italy (4)
5. Germany (3)
6. Russia (9)
7. England (6)
8. Argentina (7)
9. France (10)
10.Croatia (8).
