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The 36-year-old local man was stopped by officers from Stockton’s Community Action Team on Langley Avenue at around 1.30pm on Wednesday 7 February.
Following a search, officers recovered a quantity of cocaine, and he was arrested on suspicion of possession with intent to supply class A drugs.
He was taken into police custody for questioning and has since been released on conditional bail.
Sergeant Gavin Weidman said: “We are continuing to act on information that is being provided to us, which often results in positive results such as seizing drugs and making arrests.
“I want to take this opportunity to encourage members of the community to keep reporting suspicious drug activity believed to be taking place in their area, knowing that we will then do the rest.”
If you have information, please either contact Cleveland Police on 101 or contact Crimestoppers anonymously via 0800 555 111.