A model of Martin-Löf extensional type theory with universes is formalized in Agda, an interactive proof system based on Martin-Löf intensional type theory. This may be understood, we claim, as a solution to the old problem of modeling the full extensional theory in the intensional theory. Types are interpreted as setoids, and the model is therefore a setoid model.We solve the problem of interpreting type universes by utilizing Aczel’s type of iterative sets and show how it can be made into a setoid of small setoids containing the necessary setoid constructions. In addition, we interpret the bracket types of Awodey and Bauer. Further quotient types should be interpretable.