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The 17-year-old was arrested following a lengthy foot chase on Skinner Street.
Officers from Stockton’s neighbourhood policing team recovered crack cocaine and a mobile phone that was discarded during the pursuit.
He was taken to police custody for questioning on suspicion of possession with intent to supply class A drugs and possession of a class B drug and has since been released on conditional bail.
A/Sergeant Lee Swainston, from Stockton’s neighbourhood policing team, said: “We continue to be successful in our pursuit of individuals who we suspect to be involved in supplying drugs within our community.
“This was a lengthy chase however we were determined to catch and detain him, leading to a quantity of drugs being recovered along the way.
“While we will continue to be in the right place at the right time, I want to take this opportunity to encourage members of the public to keep reporting information relating to drug activity – no matter how small you think it might be and we will continue to act.”
If you believe drug activity is taking place, please contact Cleveland Police on 101 or by visiting the website.
Information can also be provided anonymously by calling Crimestoppers on 0800 555 111 or via their website.