Federer won his sixth Australian Open by beating Marin Cilic 6-2, 6-7, 6-3, 3-6, 6-1 at the Rod Laver Arena yesterday.
The victory puts the Swiss ace within reach of the world No 1 spot for the first time in over five years.
Federer is within 155 points of Rafael Nadal following his 20th Grand Slam title and will edge even closer when the Spanish star drops the 300 points earned by reaching the Acapulco final last year.
The 36-year-old could dethrone Nadal in early March when the ATP World Tour 500 events in Dubai and Acapulco conclude.
Elsewhere, Marin Cilic has jumped three spots after his performance in Australia while Stan Wawrinka has tumbled seven places after being sidelined with injury.