The present invention provides an improved process for the preparation of (5-amino-2-butylbenzofuran-3-yl)(4-(3- (dibutylamino)propoxy)phenyl)methanone (referred to as the compound-II) and/or salts thereof, which is useful as a key intermediate for the synthesis of DronedaroneN-{2-butyl-3-[4-(3-dibutylaminopropoxy)benzoyl]benzofuran-5-yl} methanesulfonamide. The process comprises reduction of compound-Ill (as described herein) in the presence of a metal catalyst and ammonium chloride. The process also comprises one pot preparation of 5-amino-2-butylbenzofuran-3-yl)(4-(3-(dibutylamino)propoxy)phenyl)methanone (compound II), firstly by reacting the compound-IV (as described herein) with the compound-V (as described herein) in the presence of a base and a solvent mixture to obtain the compound-Ill (as described herein) followed by in-situ reduction of the compound-Ill in the presence of a metal catalyst and ammonium chloride.
