New figures published by the International Federation of Football History and Statistics (IFFHS) rank the Gunners in seventh place which has seen Arsene Wenger’s side leapfrog the Blues in the standings.
Chelsea had previously been the highest-ranked British side on the list, but a failure to lift any silverware in the past 12 months has seen the Blues drop down to 11th place.
Arsenal, in contrast, ended a nine-year wait for a trophy when lifting the FA Cup last May, an achievement which has stood them well in the IFFHS index.
The federation uses a points system to rank teams, which is based on wins and draws in their domestic and continental competitions.
The number of points up for grabs is based on the standard of each competition, with Arsenal scoring maximum points because they play in the Premier League.
They also secured qualification to the Champions League again last term, and have progressed to the knockout stages this season – something which has also helped the club climb the rankings.
Fellow rivals Tottenham Hotspur also make the grade (28), where they surprisingly sit ahead of defending league champions Manchester City (32).
Having won the Champions League, UEFA Super Cup and Copa del Rey in 2013/14, it is no surprise Real Madrid are the number one ranked team in the world, ahead of Bayern Munich.
Spanish giants Barcelona also make the top five, as do Atletico Madrid.
