Disclosed herein is an improved, commercially viable and industrially advantageous novel process for the preparation of Strontium ranelate of formula I chemically known as distrontium 5-[bis(2-oxido-2-oxoethyl)amino]-4-cyano-3-(2-oxido-2-oxoethyl)thiophene-2-carboxylate or 5-[bis(carboxymethyl)amino]-2-carboxy-4-cyano-3-thiopheneacetic acid distrontium salt and its intermediates, in high yield and purity.