The world's oldest club is listed by FIFA as Sheffield FC.
This season (2007/8) they have been promoted and are now playing in the Unibond League Div 1 South. This is the highest league position they have ever been in.
This season is a landmark for the club as they are 150 years old.
As odd as it may seem they do not now play in Sheffield but in Dronfield just outside the city
(Jcutts now editing)
Yes But, Notts county are the oldest football team in the world to currently play at a professional level. They were formed in 1862. 2012-13. They played a total of 4,710 Football league matches - more than any other English team!
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Officially the worlds oldest club playing Association Football (Soccer) is Sheffield FC founded 1857 but unofficially it is Cambridge University Football club who have records going back to 1848 when they played games under their old Cambridge Rules. The Cambridge Rules were later used as a basis for the 'Laws of the game' for Association Football by the Football Association in 1863. Cambridge University Football club adopted the FA rules shortly after they were introduced. Sheffield FC continued to play their Sheffield rules for 14 years after the Football Association were formed and did not adopt FA Rules until 1877 by which time there were dozens of teams playing football by association rules. Guys Hospital London has an even older football club but they play Rugby Football so that is probably not the answer you are looking for.
The oldest professional football club that still exists, is Notts County FC, which was established in 1862.
Notts County Football Club is the oldest professional football team in the world. Notts County were formed in 1862, and actually pre-date The Football Association!