Iran moved up two spots, compared to FIFA's 2007 raking, to follow Brazil, Spain and Italy, which ranked first to third respectively.
Japan, Thailand and Uzbekistan, the other Asian teams among the top 20, were placed 10th, 13th and 19th respectively in the ranking.
Iran was named the Asian futsal team of the year and Vahid Shamsaei won the Asian player of the year award to mark a glamorous year for the Islamic Republics futsal.
The Asian champions managed to reach the 2008 Futsal World Cup quarterfinals in October after displaying brilliant performances which resulted in Iran being voted as the most impressive team in the tournament.
FIFA futsal world rankings:
1.Brazil
2.Spain
3.Italy
4.Iran
5.Portugal
6.Russia
7.Argentina
8.Ukraine
9.Paraguay
10.Japan