It is the second time in a week that England have missed out on a top seeding, having been told last Friday that they would be second seeds for the 2004 European Championship qualifiers.
Today's decision means England will have a more difficult task next summer.
The remaining 24 teams in Saturday's draw will not be ranked. Instead, a complicated system will be used to ensure no more than two teams from the same continent play in the same group.
That means England could be drawn in the same group as Germany or another powerful unseeded European side like Portugal or Croatia.
It was also decided today that China will be allowed to play their group matches in Korea.
THE SEEDED TEAMS
Japan, South Korea, France, Argentina, Brazil, Germany, Italy and Spain
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