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Two men were arrested after CCTV operators alerted police to a suspected drug deal taking place in Rugby town centre at approximately 1.10pm.
Plain clothed police officers who were on patrol in the area detained the two suspects on Evreux Way, Rugby, a few minutes later.
The suspects, both aged 19 and from Coventry, were arrested and taken to custody when they were found to be in possession of suspected Class A drugs, a quantity of cash and a mobile phone.
The suspects have been released on bail while investigations continue.
Detective Constable Gary Hammond, Warwickshire Police, said “this is a great example of partnership working between Rugby First BID Town Centre CCTV and Rugby Proactive CID officers.
“With such an expansive CCTV network in operation throughout Rugby, the collaboration is powerful in combating drug dealing in the town.”