Holbrook Highway Patrol Officers detected the silver dual-cab Toyota Hilux utility travelling north on the Olympic Highway near the town about 3:15pm on Thursday.

Officers stopped the vehicle and spoke to the 29-year-old male driver before searching his vehicle.

Police found numerous resealable plastic bags in the rear of the Toyota, containing what was believed to be cannabis.

The driver was arrested and taken to Albury police station.

His vehicle was also secured and towed to the station.

Another search of the vehicle by investigators from the Albury Drug Unit located more vacuum sealed bags allegedly containing cannabis.

Police will allege a total of 18.3 kilograms of cannabis was seized, with an estimated potential street value of $160,000.

Investigators charged the driver with supplying cannabis of an indictable/commercial quantity, possessing a prohibited drug and dealing with property suspected of being proceeds of crime.

The man from Pallamallawa, near Moree, was refused bail and fronted Albury Local Court on Friday morning.

He was also issued with infringement notices for being unregistered and uninsured.

Commander of the Traffic and Highway Patrol Command Assistant Commissioner John Hartley said this was an example of how Traffic and Highway Patrol Command Officers worked closely with investigators for the benefit of road safety, while preventing drug use and distribution.

"What was the identification of an unregistered vehicle on our roads has led to a very serious arrest with significant consequences for this driver,” Assistant Commissioner Hartley said.