Police have stumbled on a drug operation in Sydney's southwest, charging a man over allegations that he was selling heroin in exchange for stolen property.

Officers investigating a domestic incident in Canley Vale on Friday morning spotted drug paraphernalia and what they believed to be heroin.

A 39-year-old man fled in a car but police stopped him a short time later and took him to Cabramatta Police Station, where he was charged with supplying and possessing a prohibited drug.

The man was charged with nine counts of goods suspected stolen after a search of the home yielded numerous computers, iPads, digital cameras, mobile phones, GPS devices and a television.

Officers also allegedly found watches, jewellery, several unopened packets of cigarettes and a large amount of cash in a bucket of used syringes.

The man was also charged with common assault (domestic violence) and refused bail to appear in Parramatta Local Court on Saturday.

Police anticipate laying further charges.