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A man has been arrested by officers from the Warwickshire Police proactive CID team.
The 40-year-old man of no fixed abode was arrested by plain clothes officers who were on patrol in Newbold Road, Rugby, after they spotted a suspected drug deal.
Officers seized a quantity of what they believe to be a class A drug.
DC Thomas Quinlan from Warwickshire Police proactive CID said: “Our message to anyone dealing drugs in Warwickshire is that we are looking out for you.
“People dealing drugs cause a great deal of misery in the local community and we’re determined to get them off our streets.”
The suspect was arrested on suspicion of possession of a class A drug with intent to supply and has been released under investigation while enquiries continue.
Anyone with information that could help police with this investigation or any other concerns about drug production, dealing or use in the community can call police on 101. Alternatively, information can be provided anonymously to the independent charity Crimestoppers on 0800 555 111.