Iran's national football team moved up 12 places and was placed 33rd in the recent FIFA world rankings.
Iran stays top among the Asian teams with 720 points, followed by Japan, South Korea and Australia, reports Xinhua.
Nigeria, which has been drawn with Iran in Group F of the 2014 World Cup in Brazil, moved down to 37th and Bosnia and Herzegovina, another team in Group F, jumped up two spots to 19th.
Spain tops the year-end FIFA rankings for the sixth straight year, since starting its run of major tournament wins at the 2008 European Championship.