In this paper, the design of nonlinear observer-based dynamic controller for Nonlinear Networked Control Systems (NNCS) will be presented on the assumption that there exist packet loss between the sensor and the controller and between the controller and the actuator. Two different linear function of a stochastic variable satisfying a Bernoulli random binary distribution will represent the existence of the packet loss. The formulation of NNCS problem will be reduced to solving Linear Matrix Inequality (LMI). Finally, a demonistrative example will be presented to show the effectiveness of the proposed LMI approach.