The present invention relates to a novel, cost-effective process for the preparation of Sterile Meropenem Trihydrate, which is prepared by a) condensation of l-Azabicyclo[3.2.0]hepta-2-ene-2-carboxylic acid, 3-[(diphenoxyphosphinyl)oxy]-6-(l- hydroxyethyl)-4-methyl-7-oxo-(4-nitrobenzyl) methyl ester,[4R-[4a,5b,6b(R)]] with (2S,4S)-2-(Dimethylaminocarbonyl)-4- mercapto-l-(p-nitrobenzyloxycarbonyl)-l-pyrrolidine to obtain diprotected Meropenem b) deprotection and hydrogenation of diprotected Meropenem to obtain non-sterile Meropenem Trihydrate c) conversion of NS Meropenem Trihydrate into Sterile Meropenem Trihydrate by using water , methanolic ammonia solution and purging carbon dioxide gas.