Dapto's Jamie Craig, 27, fronted Wollongong Local Court on Sunday to apply for release after being arrested on Saturday night.

Documents tendered to court said anti-theft unit officers from Lake Illawarra Police were patrolling Penrose Drive in Avondale at about 7.15pm when they saw a white Holden Commodore driving in front them.

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Police pulled over the car and saw Craig in the drivers seat, who returned a negative breath test.

The officers conducted a licence check allegedly revealing Craig was a known drug user and had been involved in armed robberies.

When asked about his drug use, Craig allegedly replied, "yeah I smoke meth almost every day".

Officers told Craig to exit the car before asking him to empty his pockets revealing a mobile phone. They then noticed a black material sunglasses case in his underwear.

Craig allegedly told officers there was "meth" inside the case and upon emptying the contents, officers allegedly found a small plastic container.

It had multiple resealable bags inside allegedly containing a crystal-like substance, which when later weighed totalled 3.26 grams.

Police also allegedly found $690 in cash and a bank card that did not belong to Craig.

Craig allegedly told officers "it's meth, I was going to sell" and when asked about the cash he allegedly said "it's money from selling the drug".

He was arrested and taken to Lake Illawara Police Station where he was charged with two counts of having goods in personal custody suspected of being stolen; dealing with property believed to be the proceeds of crime; possess prohibited drug and supply prohibited drugs.

In court on Sunday, Craig's defence lawyer Elizabeth Parkes told registrar Martin Kane that her client needed to be at liberty to get medical treatment for blood clots, including attending an upcoming specialist appointment.

"He won't get appropriate assistance if refused bail," she said. "He will have better access in the community."

Ms Parkes also said Craig had stable accommodation at Windang, was in a new relationship and could report to police daily.

In determining whether to release Craig, registrar Kane took into account his lengthy criminal history, that he was on parole for a robbery in company and that he would likely receive a full time custodial sentence if convicted of the fresh charges.

The case was adjourned to Monday.

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