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In this paper, we propose a new class of neuro-fuzzy systems. Moreover, we develop a novel method for reduction of such systems without the deterioration of their accuracy. The reduction algorithm gradually eliminates inputs, rules, antecedents, and the number of discretization points of integrals in the center of area defuzzification method. It then automatically detects and merges similar input and output fuzzy sets. Through computer simulations it is shown that accuracy of the system after reduction and merging has not deteriorated despite the fact that in some cases up to 54% of various parameters and 74% of inputs were eliminated. The reduction algorithm has been tested using well-known classification benchmarks. [ABSTRACT FROM AUTHOR]