Uruguay have moved above Germany to become the second-highest ranked team behind world and European champions Spain in the latest FIFA rankings published on Wednesday.
Germany, who together with fourth-ranked Netherlands, Denmark (9th) and Portugal (10th) are all in a tough Group B at Euro 2012 which starts on Friday, have slipped to third.
Argentina climbed two places to seventh while Brazil (5th) and England (6th) also moved up one spot.
Portugal were the big fallers, plummeting from fifth following a dismal start to the year in which they have failed to win in three matches, scoring just one goal.
Rankings (last month's positions in brackets)
1. (1) Spain
2. (3) Uruguay
3. (2) Germany
4. (4) Netherlands
5. (6) Brazil
6. (7) England
7. (9) Argentina
8. (8) Croatia
9. (10) Denmark
10. (5) Portugalcomments