The present invention relates to an efficient and industrially advantageous process for preparation of 3-(2-bromo-4,5- dimethoxybenzene)propionitrile of formula I, with high purity and high yield,wherein compound of formula I is an important precursor of 1-cyano-4,5- dimethoxybenzocyclobutane, a key intermediate in the preparation of ivabradine or its pharmaceutically acceptable salts thereof.