Officers in Burngreave made the discovery when they stopped and searched a man, who was found to have the drug on him, near Pitsmoor Road yesterday.
A large amount of cash and a set of scales were later found when his home was searched, and he was arrested on suspicion of possession with intent to supply a class B drug and possession of a class A drug.
Police said the search was carried out thanks to recent intelligence from members of the community.
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“Information like this is important in allowing officers to proactively deal with criminals,” ofifcers said in a post on Facebook.
“Spice is a damaging and dangerous drug that's affecting the lives of those using it and those in the community. The Burngreave team will actively target those believed to be involved in the supply of spice.”
Spice is a synthetic form of cannabis which has been nicknamed the zombie drug due to the way it can leave users in a trance-like state.
Anyone with information about suspected drug use or dealing in the area is asked to call police on 101 or email their local Burngreave officers at [email protected]ice.uk.