A novel cyclometalation pathway to form CC-type palladacycles is reported. Unlike common donor-assisted cyclometalation, the NH(CO) auxiliary group undergoes a deprotonation step to form a palladalactam intermediate. The coordinating nitrogen atom functions as an intramolecular base promoting selective C-H bond cleavage. Without the NH proton, the ortho-N-phenyl C-H is activated instead.
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