In this paper, we propose an output tracking control technique for nonlinear systems. First, the Tagaki-Sugeno (T-S) fuzzy model is adopted for modelling the discrete-time nonlinear system. Second, we combine a new design concept called virtual-desired-variable (VDV) synthesis and the model predictive control (MPC) strategy to develop fuzzy observer-based output tracking controller. Sufficient conditions are derived for stabilization in the sense of Lyapunov exponential stability and are formulated in the format of linear matrix inequalities (LMIs). The advantage of using the VDV synthesis is fully illustrated when we consider the example of the truck-trailer system. The effectiveness of the proposed fuzzy controller and fuzzy observer design methodology is finally demonstrated and show satisfactory numerical simulation results.