Muguruza becomes only the second Spanish woman after Arantxa Sanchez Vicario to become the top-ranked player in the world.
The 24-year-old became the first player to beat both Serena and Venus Williams in major finals, having beaten Serena to claim the 2016 French Open.
"Becoming the WTA number one in the world is a dream come true," Muguruza told theĀ WTA's website.
"Every birthday wish was always the same as I blew out the candles - to become the best.