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Malan, who has a remarkable T20I record - 682 runs from 16 matches, with an average of 48.71 and a strike rate of 146.66, and one century to go with seven half-centuries - was at his best in the first T20I against Australia, his 43-ball 66 earning him the Player-of-the-Match award following a two-run win.
By the end of the series, he had moved up four spots to the top, his career-best placing after having reached No. 2 in November last year. His efforts have earned him a call-up as a reserve for England's 50-over squad to face Australia this week, with Joe Denly released to rejoin Kent.
"His form in T20 as it stands is phenomenal really," said Chris Silverwood, England's head coach. "It seems to keep getting better the more he bats, which is great, and it's good to watch him. He worked hard to get into the team and when he's got his opportunity, he's taken it, which is superb to watch and obviously his record is brilliant at the moment, so good on him."
Malan's ODI opportunities may be limited, with Jason Roy due to return from a side strain, along with Jos Buttler, who was released from the England bubble for the third T20I. Eoin Morgan is progressing well following a finger dislocation, while Sussex's Phil Salt has already been called up as a reserve.
"[Malan]'s been brought in, he's in great form and he is on the reserve list at the moment so if anything happens he's there, isn't he?" Silverwood added. "The 50-over format is a tough team to get into. If the opportunity comes around I'm sure he'll grab it with both hands, but it may be a case of waiting for that opportunity."
Other England batsmen to move up in the ICC rankings after the series against Australia are Jonny Bairstow and Jos Buttler, who moved up three positions to No. 19 and 12 spots to No. 28 respectively - Buttler scored 121 runs in two matches, which also won him the Player of the Series award.
There was no movement among the Australians in the top ten of the batsmen's list - Aaron Finch stayed at No. 3 and Glenn Maxwell retained the sixth spot - but fast bowler Kane Richardson has broken into the top ten for the first time in his career, his three wickets helping him get in at No. 10.
Slightly above Richardson, England legspinner Adil Rashid gained two slots to get to No. 7 after finishing the series as the most successful bowler, with six wickets, while Australia left-arm spinner Ashton Agar held on to the third spot after picking up five wickets.
Australia, who started the series ten points ahead of England at the top of the pile among T20I teams, briefly slipped to No. 2 after falling 2-0 behind in the series, but clambered back to the top after winning the last game.