The Australia national team has fallen nine places in the FIFA rankings to 34.
Recent poor results by the Socceroos have forced Holger Osieck's men to drop out of Asia's top two with Japan maintaining their ranking of 23 whilst the Korea Republic have replaced the Aussies in 25th spot.
The Socceroos lost 2-1 to Jordan in World Cup qualifying last month after their 3-0 friendly win in Lebanon which ultimately saw them slip down the world rankings ahead of the upcoming 2014 qualifier with Iraq in Qatar.
Trans-Tasman neighbours New Zealand maintained their position as number one ranked team in Oceania and moved up three positions to 92 on the overall table.
Reigning World and European champions Spain kept their position at the top ahead of Germany, Portugal, Argentina and England.
FIFA world rankings as of October 3, 2012
1. Spain 2. Germany 3. Portugal 4. Argentina 5. England 6. Holland 7. Uruguay 8. Italy 9. Colombia 10. Greece 11. Croatia 12. Russia 13. France 14. Brazil 15. Switzerland 16. Ivory Coast 17. Chile 18. Denmark 19. Mexico 20. Ecuador 21. Sweden 22. Czech Republic 23. Japan 24. Algeria 25. Korea Republic 26. Norway 27. Mali 28. Republic of Ireland 29. Bosnia-Herzegovina 30. Belgium 31. Ghana 32. USA 33. Serbia 34. Australia 35. Slovenia 92. New Zealand