Team Melli has climbed five places to the 51st spot, followed by Japan (54) and South Korea (69th).
World champion Germany comfortably tops the pile at number one despite a slump in form since its rampant campaign in Brazil.
The top three remain unchanged since September with World Cup finalist Argentina second and Colombia in third.
Iran is preparing itself for the 2015 AFC Asian Cup, which will be held in Australia from January 9 to 31.
Carlos Queiroz’s team has been pitted against the United Arab Emirates (UAE), Qatar and Bahrain in Group C of the tournament.
FIFA standings
1. Germany
2. Argentina
3. Colombia
4. Belgium
5. The Netherlands
6. Brazil
7. France
7. Portugal
9. Spain
10. Uruguay