In this paper, a new model-based engineering approach is introduced by bridging MATLAB Simulink with IEC61499 Function Block models. This is achieved by a transformation between the two block-diagram languages. The transformation supported by the developed tools sets the cornerstone of the verification and validation framework for IEC 61499 Function Blocks in closed-loop with the models of the plant. The framework also paves the way to running distributed simulations of complex hybrid (i.e., continuous-discrete) closed-loop plant-controller systems and building complex models using the efficient object instantiation techniques of IEC 61499.