The man was stopped by officers patrolling the Fishwick area of the city and searched under section 23 of the Misuse of Drugs Act.
Officers found a 'large quantity' of Class A drugs (pictured) stashed in his clothes and bag, as well as cash.
He was arrested and taken into custody for further questioning, but has since been bailed.
A police spokesman said: "During a high visibility patrol of the Fishwick area of Preston yesterday, Preston Neighbourhood Taskforce stopped and searched a male under s23 of the Misuse of Drugs Act.
"He was found in possession of a large quantity of Class A drugs and an amount of cash.
"He was arrested and has since been bailed pending further enquiries."
The force added: "Many thanks to the members of the public who continue to help us in the community by providing information.
"If you have any information you wish to share regarding drug dealing in your area, please email [email protected]"
What is Section 23 of the Misuse of Drugs Act?
Section 23 of the Misuse of Drugs Act provides police with the power to search persons for controlled drugs and detain for the purpose of search if they have "reasonable cause to suspect unlawful possession".
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