Man arrested over $400,000 worth of ice

A man has been arrested allegedly carrying $400,000 worth of the drug ice on an inner Sydney street.

Police searched the man at Ultimo on Monday afternoon and allegedly found 400 grams of methylamphetamine, zip lock bags and scales in a bag he was carrying.

A search of the man's unit allegedly turned up a small amount of drugs and paraphernalia.

The 39-year-old was charged with supplying a commercial quantity of a prohibited drug and possession.

He was refused bail and is due to appear in Newtown Local Court later on Tuesday.