This paper addresses the problem of fitting a functional model to data corrupted with outliers using a multilayered feed-forward neural network. Although it is of high importance in practical applications, this problem has not received careful attention from the neural network research community. One recent approach to solving this problem is to use a neural network training algorithm based on the random sample consensus (RANSAC) framework. This paper proposes a new algorithm that offers two enhancements over the original RANSAC algorithm. The first one improves the algorithm accuracy and robustness by employing an M-estimator cost function to decide on the best estimated model from the randomly selected samples. The other one improves the time performance of the algorithm by utilizing a statistical pretest based on Wald's sequential probability ratio test. The proposed algorithm is successfully evaluated on synthetic and real data, contaminated with varying degrees of outliers, and compared with existing neural network training algorithms.