This paper presents a new control method to regulate various parameters such as output voltage and power of the inverters interfaced with distributed generations (DGs) in the proposed microgrid system integrated with a distribution network device. Model Predictive Control (MPC) is used to control the inverters of the DGs using state-space model of the inverters in the proposed system. The distribution network device aims to improve the power quality and reliability of the microgrid system. The operation of the proposed system is tested under grid-connected and stand-alone conditions. Simulation results show that the microgrid system and the distribution network device can be coordinated effectively under the proposed control method to ensure stable operation of the overall microgrid system.