Olympic swimmer Scott Miller has been arrested and charged with possessing drugs and suspected stolen goods.

The drug is understood to be ice.

A police spokeswoman said a 38-year-old Edgecliff man was arrested at a home in Mascot on Tuesday afternoon and released on conditional bail to appear at Waverley Local Court on July 10.

The Olympic silver medallist and former world butterfly champion has previously performed community service after he admitted to supplying a friend with ecstasy pills after being arrested in 2008.

The fallen swimming star joined the Australian Institute of Sport in 1991 and went on to become a dual Olympic medallist, winning silver in the 100m butterfly at Atlanta in 1996.

He told a sentencing hearing in 2009 that when his career ended in 2004 he turned to marijuana, ecstasy and partying to numb the pain of "being finished".

Drugs had ruined his life, he said.