At around 11.20am yesterday, February 12, detectives from Rugby Proactive CID were on patrol when they saw a man passing an item, believed to be drugs, to members of the public on Railway Terrace in Rugby.
The man then entered Rugby train station, where he was arrested and detained.
Officers searched the man and he was found to be in possession of a large quantity of what is believed to be crack cocaine.
The man was arrested on suspicion of possession of a controlled (Class A) drug with intent to supply.
He has been released on police bail while enquiries continue.
This arrest comes as detectives continue their crackdown on county lines drug dealing,
County lines dry dealing is a type of organised crime where drug gangs from bigger cities sell drugs in smaller towns such as Rugby.
If you have information or concerns about people involved in drug dealing or vulnerable people being exploited by drug dealers, Warwickshire Police said they would like to hear from you.
Information from the public is vital because it helps officers to get a better picture of the problem and who is involved.
You can call Warwickshire Police on 101 or you can contact the independent charity Crimestoppers anonymously on 0800 555 111.
Always call 999 in an emergency.
Man arrested in Rugby after detectives spot him handing suspected crack cocaine to members of the public