Chris Coleman's side have endured a disastrous year, with their World Cup qualifier win over Scotland in October sandwiched by six successive defeats.
That poor run sees Wales fall below Scotland, who themselves have dropped two places to 72nd after their hopes of reaching Brazil 2016 were all but extinguished.
Northern Ireland have risen four spots to 96th, the only home nations side to improve upon their ranking, while the Republic of Ireland fall six places to 42nd.
The top 10 remain the same, with Spain finishing at the summit for the fifth successive year, followed by Germany, Argentina and Italy.
The biggest mover is Colombia, who won six of their eight games in 2012. They finish in the top five, a jump of 31 places from the end of last year.
FIFA World Rankings: 1 Spain, 2 Germany, 3 Argentina, 4 Italy, 5 Colombia, 6 England, 7 Portugal, 8 Netherlands, 9 Russia, 10 Croatia.
Selected others: 42 Republic of Ireland, 72 Scotland, 82 Wales, 96 Northern Ireland.
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