The Socceroos were heavy underdogs entering the World Cup in Qatar, but Arnold led them to wins over Tunisia and Denmark to reach the Round of 16 where they pushed eventual champions Argentina to the limit in what was a brilliant campaign.
L'Equipe gave coaches a rating after each match, and Arnold tallied the highest average with 6.75, first ahead of Japanese coach Hajime Moriyasu who was second with 6.50.
Morocco boss Walid Regragui ranked equal third with Argentina's Lionel Scaloni and Didier Deschamps who took charge of finalists France came in fifth.
With his role as Socceroos coach regularly coming under heavy scrutiny prior to the World Cup, Arnold was overjoyed with the recognition from a respected publication.
“It’s incredible," he said from England where he is currently on holiday.
"I have just seen it (the rankings) but full credit must go to all the players, staff and Football Australia who did the nation extremely proud.
“The World Cup memories will always be there for all of Australia to remember.
“It was also down to the wonderful support we had back home.
“It was a great World Cup and to play against the two finalists (Argentina and France) was a dream come true for us all.”
Now off contract following the tournament with his future undecided, former Socceroo Robbie Slater said the achievement would be a huge boost for Arnold's standing in Australian football.
“L’Equipe is one of the most respected and one of the harshest makers of games, coaches, players you name it,” Slater said.
“They’re the most respected in all of Europe.
“He should take that newspaper and bring it back to show to James Johnson (Football Australia chief executive officer) just in case James Johnson doesn’t get the French press.”
Arnold's manager Tony Rallis lauded the 59-year-old, remarking L'Equipe's rankings represent Australia's ability to produce coaches of the highest calibre.
“‘Arnie’ was voted by an internationally renowned publication - across all games - as being number one ranked coach based on many factors,” Rallis said.
“Our squad did not have one starting player in the top five leagues around the world. This French publication is looking at this and wondering how this coach achieved what he did through a competition (A-League) that has one tier and only 11 clubs.
“This puts into perspective that Australia does produce world class coaches.
“This is the world stage – 206 teams started this World Cup journey, 32 went to the World Cup and we were ranked dead last yet finished with a World Cup ranking of 11th.”
Arnold and the Socceroos' success in Qatar has seen them achieve their best international ranking since 2012 as they rose 11 places to 27th, after finishing the tournament as the 11th-best side.
