Ecological driving aiming at optimizing energy consumption is highly desirable for sustainable intelligent transportation systems. This paper presents a unique development of ecological vehicle driving system in model predictive approach. The vehicle's fuel consumption model and the model based anticipation of future road-traffic situations are used in this rigorous reasoning approach of deriving the control input. A combination of Continuation and Generalized Minimum Residual Methods is used to optimize the sequence of vehicle control actions required in the prediction horizon aiming long run fuel economy while maintaining a safe driving. Performance of the proposed system is evaluated through simulations in AIMSUN NG microscopic transport simulator. The driving behavior with fuel saving aspects is graphically illustrated, compared and analyzed to signify the achievement of the developed system.