The coupling reaction of iodoanisole and phenylboronic acid occurs in aqueous medium in presence of palladium complexes with water-soluble phosphine ligands with good yields (> 99%). The complex PdCl2[Ph2P(CH2),SO3K](2) is an excellent precursor to catalyze the coupling reactions of aryl halides with arylboronic acid in toluene/ethanol/water with sodium carbonate as base and surfactants as phase transfer reagents between 30 degrees C and 78 degrees C. With increasing concentration of the surfactant the rates of the reactions were increased and the formation of byproducts was suppressed. The catalytic system was active down to the ppm range.