Australian Open runner-up Marcos Baghdatis climbed 27 places to a career-high 27th in the new world rankings released by the Association of Tennis Professionals (ATP) on Monday.
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Federer moved to 7,275 points, 2,660 ahead of world number two Rafael Nadal of Spain and 4,490 clear of third-placed American Andy Roddick.
German Nicolas Kiefer climbed 13 places to 12th after reaching the semi-finals in Melbourne, while former world number one Lleyton Hewitt of Australia slipped out of the top 10 to 11th following his second-round defeat.
Russian Marat Safin, who beat Hewitt in last year's Australian Open final but did not defend his title because of injury, fell 39 places to number 50.
