This paper exploits the ability of a novel ant colony optimization algorithm called gradient-based continuous ant colony optimization, an evolutionary methodology, to extract interpretable first-order fuzzy Sugeno models for nonlinear system identification. The proposed method considers all objectives of system identification task, namely accuracy, interpretability, compactness and validity conditions. First, an initial structure of model is obtained by means of subtractive clustering. Then, an iterative two-step algorithm is employed to produce a simplified fuzzy model in terms of number of fuzzy sets and rules. In the first step, the parameters of the model are adjusted by utilizing the gradient-based continuous ant colony optimization. In the second step, the similar membership functions of an obtained model merge. The results obtained on three case studies illustrate the applicability of the proposed method to extract accurate and interpretable fuzzy models for nonlinear system identification.