Greece's Stefanos Tsitsipas, who lost to Djokovic in straight sets in Sunday's final in Melbourne, overtook Norwegian Casper Ruud in third place, matching a career-best ranking he first achieved in August 2021.
Andrey Rublev of Russia, dominated by Djokovic in the quarter-finals, climbed to a career-best position of fifth.
The shock elimination of Djokovic's long-time rival Rafael Nadal in the second round saw the Spaniard drop four places to sixth.
Karen Khachanov's run to the semi-finals in Melbourne propelled the Russian up seven places to 13th.
Tommy Paul of the United States, who also reached the final four, broke into the top 20 for the first time as he soared up the rankings by 16 places to 19th.
