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The 25-year-old man, of Quenby Road in Billingham, was leaving a property on Meath Street on the evening of Friday 20 December when he was greeted by officers from Middlesbrough's proactive team.
He attempted to evade them however they stopped and detained him.
Following a search, he was arrested on suspicion of possession of criminal property after a large amount of cash was found.
Police subsequently searched the property and seized a large amount of cocaine and crack cocaine estimated to be valued at almost £9,000.
Back at police custody the man was charged in connection with possession of criminal property and two counts of possession with intent to supply class A drugs. He was remanded in custody and is due to appear at Teesside Magistrates Court on Saturday 21 December.