The Selecao lost friendlies to Mexico and Argentina in June and now sit in 11th place while England jump to fourth after reaching the quarter-finals at Euro 2012
Brazil have dropped out of the Fifa rankings top 10 for the first time since the system's inception in 1992.
The Selecao have fallen five places to 11th after losing their last two games to Mexico and a Lionel Messi inspired-Argentina, who remain seventh.
England have moved up to fourth in the world despite their quarter-final exit at Euro 2012 while Italy, who beat the Three Lions in the quarter-finals and reached the final have jumped up six places into sixth.
Spain retain top spot with Germany rising to second place at the expense of Uruguay while the Netherlands have suffered after their disastrous Euro 2012 campaign, dropping to eighth position.
Portugal have also jumped into the top five after reaching the semi-finals in Ukraine and Poland and the Czech Republic have risen nine places to break into the top 20 after making the quarter-finals before being knocked out by the Seleccao.