It is the first time in almost four years that the Serb is outside the top two in the world rankings.
The last time was in October 2018.
New world number one is the Russian Daniil Medvedev, who was also world number one for a short period earlier this year.
Medvedev cannot take part in Wimbledon in July as Russians and Belarusians are barred from playing the tournament.
However, no ranking points are awarded in the grand slam tournament.
Zverev is likely to lose second place
New world number two is the German Alexander Zverev, who for the first time takes the step up to the top two.
However, the German is likely to lose that place soon as he is currently on the sidelines after injuring three ligaments in one foot against Rafael Nadal in the French championship semi-final.
Swedish Mikael Ymer loses three places and is in 90th place.
Swiatek tops the ladies' ranking
It is not as dramatic at the top of the ladies' world rankings.
Iga Swiatek, Poland, is still housed there, at the top.
Rebecca Peterson is the best Swede in 94th place.