It comes amid an investigation by Lake Macquarie detectives into the alleged supply of drugs - mainly methylamphetamine - in the Windale and Gateshead areas.

Police were patrolling Gateshead on Thursday morning when they spoke with a 38-year-old man at Coral Crescent.

Officers arrested him after a search of the man allegedly uncovered methylamphetamine.

A search of a Coral Crescent home on Thursday afternoon - during which police allegedly sezied methylamphetamine, cannabis and more than $20,000 in cash - led to the arrest of a 54-year-old man.

The 54-year-old was charged with five offences, including supply indictable quantity prohibited drug, recklessly deal with the proceeds of crime and possess prohibited drug.

The 38-year-old was charged with supply indictable quantity prohibited drug and possess prohibited drug.

Both men were refused bail to appear at Belmont Local Court on Friday.