The Boys in Green are now level with Bolivia and west African nation Gabon, three places below Caribbean minnows Haiti who occupy 39th place.
The slide continued throughout the autumn with Ireland dropping to 36th after suffering a record 6-1 home mauling at the hands of the Germans.
Ireland will now finish the year outside the top 40 for the first time since 2006.
Meanwhile, Northern Ireland, who rose 17 places into the top 100 in the last rankings, continued their climb, rising four places to 96th.
Spain finish the year at the top spot, with Germany and Argentina remaining in second and third respectively, while Italy move into fourth spot.
A run of six wins in eight games in 2012 has seen Colombia move up from 36th at the end of last year and into the top five, while Portugal have drifted three places to seventh.