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Arrest over Sydney magic mushroom bust

A Sydney man has been charged after police discovered nearly $700,000 worth of magic mushrooms. (AAP)

A man has allegedly been caught with nearly $700,000 worth of magic mushrooms in a western Sydney home, prompting major drugs charges.

The 26-year-old was arrested on February 3 after a search of the man's vehicle conducted in West Pennant Hills allegedly uncovered magic mushrooms, cocaine, two knives and more than $50,000 in cash.

He was charged over that bust and remains before the courts.

However, police later that day raided a Greystanes home and allegedly located a clandestine lab for manufacturing magic mushrooms.

More than 46 kilograms of the mushrooms - worth nearly $700,000 - were allegedly seized from the Merrylands Road property.

The 26-year-old was on Monday charged at Silverwater jail with the manufacture and supply of large quantities of illicit drugs.

He'll face Parramatta Local Court on Tuesday.

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