India remained fourth, while England dethroned Australia from the top position in the women's cricket team rankings for the first time following the annual rankings update, the International Cricket Council (ICC) announced on Tuesday.
India, who reached the final of the ICC Women's World Cup, have gained three points to reach 116 points and have New Zealand firmly in their sights.
In the team rankings, performances in all the three formats are considered.
The rankings now take into account 2014-15 and 2015-16 seasons at 50 percent each while the 2016-17 season accounts for 100 percent.
India captain Mithali Raj said: "Gaining these valuable points is no mean achievement and have come after some fine performances over the past year, including at the World Cup. I'm sure this will inspire our team in matches ahead.
"We are now close to New Zealand in the rankings and will aim to be number three."
England are now level with Australia on 128 points but ahead on decimal points.
Heather Knight-led England, who won the ICC Women's World Cup earlier this year, have climbed from 125 points to reach 128.47 points, according to the ICC release.
Australia are on 128.43 points, slipping from the top spot for the first time since the combined women's rankings were introduced in October 2015.
Since the women's team rankings, the small gap of 0.04 points between the two sides will lend a lot of interest to England's tour of Australia, where the top two sides will play one Test, three ODIs and three T20Is from October 22 to November 21.
England captain Heather Knight said: "It's flattering to be named as the No.1 side in the world because it's a sign of how much progress we've made.
"It won't take anything away from the challenges ahead of us, though. We're a developing side and our journey isn't finished yet.
"We have plenty more hard work to do, starting with the Ashes in Australia this winter but it has been a great 12 months for us. We'll never forget the feeling of winning the ICC Women's World Cup on home soil and we want to keep pushing forward as a side so we can experience more moments like that."
England and Australia are the only sides to see a change in the rankings with New Zealand retaining the third position with their pre-update tally of 118 points.
The Windies are in the fifth position but have lost four points to be at 101 points, while South Africa remain in the sixth position on 93 points.
Pakistan, having lost one point, are on 72 while Sri Lanka, too, are unchanged in points to take the eighth spot with 67 points.
Bangladesh (37) and Ireland (30) are the bottom two sides on the points table.
