Wales have climbed to their highest world ranking position of second following Saturday's gripping victory over England at Twickenham.
The latest rankings list released by World Rugby also shows a drop of three places for England from third to sixth.
Wales' dramatic 28-25 World Cup Pool A win against England puts them firmly on course for the quarter-finals.
If Warren Gatland's men beat Millennium Stadium opponents Fiji on Thursday - then Australia defeat England at Twickenham two days later - England will crash out of the tournament.
Wales have moved up two places behind long-time leaders New Zealand, with Australia third, Ireland fourth, South Africa fifth and England sixth.
Scotland, meanwhile, are up from 12th to ninth on the back of a strong World Cup start that saw them sweep aside Japan and the United States in bonus point fashion.
Latest World Rugby rankings: 1 New Zealand 92.89, 2 Wales 87.31, 3 Australia 86.75, 4 Ireland 84.40, 5 South Africa 82.66, 6 England 82.35, 7 France 81.12, 8 Argentina 79.66, 9 Scotland 79.05, 10 Fiji 76.96.