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The University of Oxford was ranked first in an international ranking chart for the fourth consecutive year.
Times Higher Education's annual world ranking places Cambridge third and Imperial College London tenth.
However, ranking compilers have warned that other British universities "are struggling to keep up" with their global rivals.
They warn that Germany is "about to overtake" the UK by endowing itself with the most prestigious universities in Europe.
The ranking again shows Oxford as the best university in the world, ahead of an American university – the California Institute of Technology – in second place.
World competition
American universities continue to dominate the rankings, occupying seven of the top ten places and 60 of the top 200.
Munich University of Technology: German universities rank among the highest in the ranking
Asian academic systems are catching up – China and Japan continue to rank well.
Iranian universities are among the "biggest climbers" of this year's ranking.
Global Ranking of Top 10 University Universities by Times Higher Education
The complete list includes 1,300 universities in 92 countries, rankings taking into account the quality of teaching, the volume and reputation of research, research citations, industry revenues and international links.
An analysis accompanying the rankings indicates that the so-called "gold triangle" of the United Kingdom – the universities of Oxford, Cambridge and London – continues to be a great success.
But he warns that this "masks" a relative drop compared to other British universities, while German universities are improving rapidly in the rankings.
Since 2016, the number of British universities in the top 200 has gone from 34 to 28, while the number of German universities has increased from three to 23.
International partnerships
The Times Higher Education analysis indicates that this may reflect larger investments in the German university system.
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The University of Cambridge, which is part of the "gold triangle", was ranked in third place
He also warns that UK universities could be even more funded by Germany if they lose access to European research partnerships after Brexit.
"If the UK starts to withdraw from the international scene, its position in the top echelons of the rankings will suffer," said Phil Baty of Times Higher Education.
Vice-Chancellor of Oxford University, Louise Richardson, said: "The success of Oxford is largely due to our research collaborations with other excellent universities of the world we remain committed to deepening and developing these partnerships, regardless of the benefits of Brexit. "
British universities in the top 400
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