Police say the seizure of 10,000 hits of ice on a Canberra highway, with a street value of $750,000, will have a "significant impact" on the territory's illegal drug trade.

Acting on intelligence, ACT Policing officers stopped a car on the Federal Highway about 2:50pm on Friday.

While searching the car they discovered one kilogram of what was later found to be methylamphetamine — or ice — inside a spare wheel.

A 27-year-old O'Connor man was charged with trafficking a controlled drug.

Detective Superintendent Scott Moller said the seizure would have large effect on crime in the community.

"It's going to have a significant impact on organised crime in the ACT," he said.

Officers searched the car and found the kilo of ice inside a spare wheel. ( Supplied: ACT Policing )

"This is a large seizure — a kilo of methamphetamine for Canberra is significant," he said.

"It is pleasing that with a street value of approximately $750,000, seizing these drugs will see that profit removed from those peddling this insidious drug in our suburbs

Superintendent Moller said the alleged offender was known to police and investigations were continuing.

The man was refused bail in the ACT Magistrate Court.

Police urged anyone with information to contact police or Crime Stoppers.