In this paper, the underlying problem with the color-gradient (CG) method in handling density-contrast fluids is explored. It is shown that the CG method is not fluid invariant. Based on nondimensionalizing the CG method, a phase-field interface-capturing model is proposed which tackles the difficulty of handling density-contrast fluids. The proposed formulation is developed for incompressible, immiscible two-fluid flows without phase-change phenomena, and a solver based on the lattice Boltzmann method is proposed. Coupled with an available robust hydrodynamic solver, a binary fluid flow package that handles fluid flows with high density and viscosity contrasts is presented. The macroscopic and lattice Boltzmann equivalents of the formulation, which make the physical interpretation of it easier, are presented. In contrast to existing color-gradient models where the interface-capturing equations are coupled with the hydrodynamic ones and include the surface tension forces, the proposed formulation is in the same spirit as the other phase-field models such as the Cahn-Hilliard and the Allen-Cahn equations and is solely employed to capture the interface advected due to a flow velocity. As such, similarly to other phase-field models, a so-called mobility parameter comes into play. In contrast, the mobility is not related to the density field but a constant coefficient. This leads to a formulation that avoids individual speed of sound for the different fluids. On the lattice Boltzmann solver side, two separate distribution functions are adopted to solve the formulation, and another one is employed to solve the Navier-Stokes equations, yielding a total of three equations. Two series of numerical tests are conducted to validate the accuracy and stability of the model, where we compare simulated results with available analytical and numerical solutions, and good agreement is observed. In the first set the interfacial evolution equations are assessed, while in the second set the hydrodynamic effects are taken into account.