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A new and relatively simple synthetic strategy has been described for Pd(II)-catalyzed C-C bond formation via alkylation of ortho C(sp2)-H bonds in substituted azobenzenes possessing (2-phenylamino)phenylazo directing group employing different alkyl iodides. The yields of various ortho alkylated products are found to be good to excellent (65%-85%). A palladocyclic intermediate complex has been isolated and fully characterized. Based on the experimental results and the isolation of the palladocyclic intermediate, a catalytic cycle involving a sequential C-H activation/oxidative addition followed by reductive elimination pathway has been proposed. [ABSTRACT FROM AUTHOR]