Officers from the Sheffield North West neighbourhood policing team said the driver of a BMW 1 Series suspected to be involved in drug dealing was pursued from Manchester Road, Stocksbridge to Carr Road, Deepcar on Thursday afternoon after failing to stop.
It followed an earlier tip-off from the public that the occupant of the car, which was not insured, may be involved in crime.
A police spokesperson said: “A search of the car located several bags suspected to be a Class A drug, and money was also seized.
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"A search of the drivers home address located a larger quantity of a substance suspected to be a Class A drug which had been concealed. Following questioning a female has now been released from custody and remains under investigation.”
The BMW was also seized, police said.