Construction of co-expression network and extraction of network modules have been an appealing area of bioinformatics research. This article presents a co-expression network construction and a biologically relevant network module extraction technique based on fuzzy set theoretic approach. The technique is able to handle both positive and negative correlations among genes. The constructed network for some benchmark gene expression datasets have been validated using topological internal and external measures. The effectiveness of network module extraction technique has been established in terms of well-known p-value, Q-value and topological statistics.