Ireland slipped back to third as the Boks moved within touching distance of the top, now trailing New Zealand by just 0.71 ranking points.
The Boks surrendered their No. 1 ranking to the Kiwis last week following their shock defeat to the Wallabies at Ellis Park, dropping all the way down to third.
The All Blacks stayed at No. 1 this week only because their 29-23 defeat to Los Pumas was not heavy enough - they needed to lose by at least 15 to surrender the spot.
That razor-thin margin sets the stage for a decisive double-header between the sport's fiercest rivals - the Boks and the All Blacks - with back-to-back Rugby Championship clashes in Auckland on 6 September and Wellington a week later set to determine who holds the title of world's best.
World Rugby rankings
1 New Zealand 90.72
2 South Africa 90.01
3 Ireland 89.83
4 France 87.82
5 England 87.64
6 Australia 84.85
7 Argentina 83.40
8 Scotland 81.57
9 Fiji 80.50
10 Italy 77.77