In this paper, a robust fault-tolerant model predictive control (RFTPC) approach is proposed for discrete-time linear systems subject to sensor and actuator faults, disturbances, and input constraints. In this approach, a virtual observer is first considered to improve the observation accuracy as well as reduce fault effects on the system. Then, a real observer is established based on the proposed virtual observer, since the performance of virtual observers is limited due to the presence of unmeasurable information in the system. Based on the estimated information obtained by the observers, a robust fault-tolerant model predictive control is synthesized and used to control discrete-time systems subject to sensor and actuator faults, disturbances, and input constraints. Additionally, an optimized cost function is employed in the RFTPC design to guarantee robust stability as well as the rejection of bounded disturbances for the discrete-time system with sensor and actuator faults. Furthermore, a linear matrix inequality (LMI) approach is used to propose sufficient stability conditions that ensure and guarantee the robust stability of the whole closed-loop system composed of the states and the estimation error of the system dynamics. As a result, the entire control problem is formulated as an LMI problem, and the gains of both observer and robust fault-tolerant model predictive controller are obtained by solving the linear matrix inequalities (LMIs). Finally, the efficiency of the proposed RFTPC controller is tested by simulating a numerical example where the simulation results demonstrate the applicability of the proposed method in dealing with linear systems subject to faults in both actuators and sensors.