Police stopped a BMW in "suspicious circumstances" on Hatfield Close at around 3.30pm on Monday (November 2).
Officers noticed the driver appeared nervous and a search of the vehicle led to £10,000 being recovered from the passenger door.
The 38-year-old man, from Skelmersdale, was arrested on suspicion of possession of criminal property and was taken to a police station for questioning.
A number of addresses in Lancashire were then searched and a further £26,000 and 2kg of suspected cocaine were discovered. Police say enquiries are ongoing.
A spokesman for Merseyside Police said: "If you have any information about suspected drug supply in your area, please contact our social media desk via Twitter @MerPolCC or Facebook Merseyside Police CC.
"You can also call 101 or contact the independent charity Crimestoppers anonymously, on 0800 555 111 or via their online form at https://crimestoppers-uk.org/. Always call 999 if a crime is in progress."
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