Cannabis with a street value of $2.3 million has been seized from a house in Tasmania's north-west, in what police say is one the state's biggest drug busts.

Police said they discovered the hydroponic set up with 1,000 cannabis plants in the final stages before harvesting at Lileah near Smithton.

Officers also found 50 kilograms of dried cannabis they allege was already packed into bags ready for sale.

A 52-year-old man was arrested nearby and has been charged with trafficking.

He has been bailed to appear in court later.