A Labour councillor has been questioned by police in connection with the discovery of drugs in the wheel arch of a car.
Councillor Asaf Ali, who represents Alexandra Ward on Oldham Council, was arrested on Friday night.
A substantial amount of money was also seized from a house and inquiries by Greater Manchester Police were continuing over the weekend.
Mr Ali was released without charge on Saturday by GMP.
The councillor is due to defend his seat in this year's council elections.
A GMP spokeswoman said: "Following information received by police, officers attended Brompton Street, Oldham to search a motor vehicle.
"Items believed to be drugs were recovered.
"A male has been arrested and inquiries are continuing."