This paper presents a guaranteed method for the parameter estimation of nonlinear models in a bounded-error context. This method is based on functions which consists of the difference of two convex functions, called DC functions. The method considers DC representations of the functional form of the dynamic system to obtain an outer bound of the set of parameters that are consistent with the measurements, the system and the considered bounded error. At each iteration, the proposed algorithm solves several convex optimization problems to discard from the initial search region subregions that are proved not consistent. This operation is repeated while the obtained solution is improved. Four examples are provided to clarify the proposed identification algorithm. (C) 2007 Elsevier Ltd. All rights reserved.