The stability analysis and stabilization of Takagi-Sugeno (T-S) fuzzy delta operator systems with time-varying delay are investigated via an input-output approach. A model transformation method is employed to approximate the time-varying delay. The original system is transformed into a feedback interconnection form which has a forward subsystem with constant delays and a feedback one with uncertainties. By applying the scaled small gain (SSG) theorem to deal with this new system, and based on a Lyapunov Krasovskii functional (LKF) in delta operator domain, less conservative stability analysis and stabilization conditions are obtained. Numerical examples are provided to illustrate the advantages of the proposed method