This paper presents a new algorithm for color detection and segmentation of road signs based on fuzzy sets. The images were taken by a digital camera mounted in a car. The RGB image was converted into HSV color space, and segmented by using a set of fuzzy rules depending on the hue and saturation values of each pixel in the HSV color space. The fuzzy rules are used to extract the colors of the road signs. The method was tested on outdoor images in different light conditions, and it was tested on color images from different European countries and it showed high robustness. This project is part of the research conducted by Dalarna University-Sweden and Napier University Edinburgh-Scotland in the field of the Intelligent Transport Systems (ITS).