This paper focuses on iterative parameter estimation methods for a nonlinear closed-loop system (i.e., a nonlinear feedback system) with an equation-error model for the open-loop part. By applying negative gradient search, a gradient-based iterative algorithm is constructed. To reduce the computational costs and improve the parameter estimation accuracy, the hierarchical identification principle is employed to derive a hierarchical gradient-based iterative algorithm. A simulation example is provided to test the effectiveness of the proposed algorithms.