In this paper, we introduce a design methodology of data-centroid Radial Basis Function neural networks with extended polynomial function. The two underlying design mechanisms of such networks involve K-means clustering method and Particle Swarm Optimization(PSO). The proposed algorithm is based on K-means clustering method for efficient processing of data and the optimization of model was carried out using PSO. In this paper, as the connection weight of RBF neural networks, we are able to use four types of polynomials such as simplified, linear, quadratic, and modified quadratic. Using K-means clustering, the center values of Gaussian function as activation function are selected. And the PSO-based RBF neural networks results in a structurally optimized structure and comes with a higher level of flexibility than the one encountered in the conventional RBF neural networks. The PSO-based design procedure being applied at each node of RBF neural networks leads to the selection of preferred parameters with specific local characteristics (such as the number of input variables, a specific set of input variables, and the distribution constant value in activation function) available within the RBF neural networks. To evaluate the performance of the proposed data-centroid RBF neural network with extended polynomial function, the model is experimented with using the nonlinear process data(2-Dimensional synthetic data and Mackey-Glass time series process data) and the Machine Learning dataset(NOx emission process data in gas turbine plant, Automobile Miles per Gallon(MPG) data, and Boston housing data). For the characteristic analysis of the given entire dataset with non-linearity as well as the efficient construction and evaluation of the dynamic network model, the partition of the given entire dataset distinguishes between two cases of Division I(training dataset and testing dataset) and Division II(training dataset, validation dataset, and testing dataset). A comparative analysis shows that the proposed RBF neural networks produces model with higher accuracy as well as more superb predictive capability than other intelligent models presented previously.