The traditional model predictive control (MPC) needs to dynamically predict all voltage vectors of permanent magnet synchronous motor (PMSM), which has the problems of large calculation and long calculation period. Therefore, an advanced model predictive current control (MPCC) is proposed. The strategy could reduce the voltage vector selection, reduce the redundancy of the algorithm calculation, and improve the control efficiency. On this basis, the full-order sliding mode observer is used to accurately estimate the rotor position and speed of the PMSM. In the designing process of the full-order sliding mode observer, the idea of fuzzy control is integrated into the traditional sliding mode observer. The improved sliding mode observer could effectively solve the chattering problem of rotor position and speed during observation. Finally, the simulation verifies the correctness and practicability of the proposed strategy.