In this paper the use of artificial neural network in power system stability is studied. A predictive controller based on two neural networks is designed and tested on a single machine infinite bus system which is used to replace conventional power system stabilizers. They have been used for decades in power system to dampen small amplitude low frequency oscillation in power systems. The increases in size and complexity of power systems have cast a shadow on efficiency of conventional method. New control strategies have been proposed in many researches. Artificial Neural Networks have been studied in many publications but lack of assurance of their functionality has hindered the practical usage of them in utilities. The proposed control structure is modelled using a novel data exchange established between MATLAB and DIgSILENT power factory. The result of simulation proves the efficiency of the proposed structure.