Interaction between the lattice and the orbital degrees of freedom not only makes rare-earth nickelates unusually "bad metal", but also introduces a temperature driven insulator-metal phase transition. Here we investigate this insulator-metal phase transition in thin films of SmNiO3 using the slow time dependent fluctuations (noise) in resistivity. The normalized magnitude of noise is found to be extremely large, being nearly eight orders of magnitude higher than thin films of common disordered metallic systems, and indicates electrical conduction via classical percolation in a spatially inhomogeneous medium. The higher order statistics of the fluctuations indicate a strong non-Gaussian component of noise close to the transition, attributing the inhomogeneity to co-existence of the metallic and insulating phases. Our experiment offers a new insight on the impact of lattice-orbital coupling on the microscopic mechanism of electron transport in the rareearth nickelates.The interest in Perovskite nickelates (RNiO 3 , R = rare earth elements) originates from a rich phase space that exhibits many interesting phenomena including sharp insulator-metal transition, charge or orbital ordering, magnetic ordering etc.1-5 . The radius of the rare earth element controls the bond lengths as well as the tilt of the (N iO 6 ) 3− octahedra, and hence the orbital overlap which allows a large variation in the electron interaction within the RNiO 3 family 5,6 . The correlation effects are however complicated by the structural uniqueness of these compounds. For small radius, e.g. R = Sm, Eu, Gd,..., Lu, an antiferromagentic insulator (AFI) ground state is stabilized along with a monoclinic distortion of the crystal structure at low temperatures (T ). With increasing T , two successive phase transitions occur, (i) AFI to PI (paramagnetic insulator) magnetic transition at the Neel temperature T N , and (ii) PI to PM (paramagnetic metal) transition at T IM associated with structural transition from the monoclinic (P 2 1 /n) to orthorhombic (P bnm) symmetries 6-8 . Due to the complex interplay between the structural distortions and Ni−O orbital interactions, the nature of the AFI-PI and PI-PM transitions remains poorly understood, in spite of many experimental investigations in the past 9-13 .SmNiO 3 is unique in the sense that it exists in the intermediate regime between strong and weak interelectron interaction regimes, and displays the highest T N , in the rare earth nickelate family. For smaller ionic radii, i.e. for R = Sm, Eu, Gd, Dy, etc, where T N < T IM , the PI-PM transition is suggested to be first order in nature 1,14 , although the microscopic details of this first order phase transition remains obscured. For SmNiO 3 , the only evidence so far for a structural transition at T IM is an indirect Raman comparison with NdNiO 3 (Ref 10 ). While the conventional time-averaged electrical resistivity measurements can indicate an overall change in the nature of electronic states, i.e. from an insulator to a metal, alternative experim...