The modular multilevel converter (MMC) is considered among the top choices for very high-power applications due to its superior features. To operate with good performance, effective control and modulation techniques are required to suppress the detrimental effects, including the circulating current and the capacitor voltage ripples. This paper proposes an efficient variable nearest level control-model predictive control (VNLC-MPC) technique. With few control actions to evaluate at each controller sampling period, the proposed method can achieve high controllability of the converter output current and power with reduced computational burden. Simulations are carried out on a three-phase MMC-based power system. The simulation results validate the VNLC-MPC strategy achieving higher quality of output current waveforms, reduced circulating currents and smaller capacitor voltage ripples.