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The team jumped 15 places to 11th in the list after an exceptional Euro 2016 performance, which saw it top its group and go on to reach the semi-finals.
England, which dropped two places to 13th, could only reach the last 16 of the competition before losing to Iceland, in a match some called the team's most humiliating defeat of all time.
The loss was so dire that manager Roy Hodgson resigned immediately after the game - and the Football Association is still on the hunt for his replacement.
Argentina remains the best team in the world, followed by Belgium, Colombia, Germany, and Chile in an unchanged top five. Portugal jumps two places to six after its Euro 2016 win, while France climbs a huge 10 places to 7th after making it to the tournament's final.
The Welsh football team enjoyed a massive homecoming parade in Cardiff last Friday. There are reports that the players could be invited to Clarence House for Royal reception with the Prince of Wales, but that is unlikely to happen until later in the year. Wales' next scheduled match is a World Cup qualifier against Moldova on September 5.