Louis van Gaal's side were beaten 2-0 by France in Paris last week, with the 2010 World Cup finalists looking lacklustre throughout their international friendly at the Stade de France.
After a dominant performance in their qualifying group for Brazil 2014, the Dutch have failed to win any of their three games since, having also drawn with Japan and Colombia in November.
And, after being a constant presence in the top 10 of FIFA's rankings for almost 14 years, Van Gaal's team have now dropped to 11th, with Belgium replacing them in 10th.
Marc Wilmots has guided Belgium to their first World Cup since 2002, and the country is back in the top 10 after dropping to 11th last November.
The world's top five nations remain unchanged, with reigning world and European champions Spain continuing to lead the way from Germany, Argentina, Portugal and Colombia, while Uruguay have leapfrogged Switzerland into sixth.
Elsewhere, Egypt climbed 12 places to 26th, while Bosnia and Herzegovina - who will take part in their first World Cup this year - slipped four spots to 21st.
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