Olympic and Commonwealth Games medallist Jack Bobridge has been charged with drug dealing as part of an ongoing operation targeting licensed venues in Perth.

Bobridge was arrested on Wednesday after police executed search warrants at his home in the northern suburb of Yokine, as well as a North Perth business.

"The investigation led detectives to charge the 28-year-old man with two counts of sell and supply a trafficable quantity of MDMA and three counts of sell and supply MDMA," police said in a statement.

Bobridge later appeared in the Perth Magistrates Court on Thursday to face six charges.

He was granted bail and is due to reappear in court next month.

Bobridge was forced to retire from cycling last year due to rheumatoid arthritis after appearing at three Olympic Games and winning two silver medals, including one in the men's team pursuit in Rio last August.

At the time, he was the reigning Australian road race champion, having produced a stunning effort in Buninyong near Ballarat to win the national championship.

Bobridge won a silver medal in the men's team pursuit at the Rio Olympics. ( AAP: Lukas Coch )

Bobridge also claimed three track world championship gold medals, four Commonwealth Games golds — including two in Glasgow in 2014 — and broke the individual pursuit world record in 2011.

Detectives in Perth said he had been charged as part of Operation Inception, an investigation targeting entertainment precincts in the city.

Ecstasy, cocaine, methylamphetamine and cannabis worth a total of about $1 million has been seized so far during the operation, with 61 people facing charges, police said.

"Significant resources have been put into the Perth entertainment precincts to ensure that we identify those people selling drugs," Detective Senior Sergeant Darryl Cox said.

"We will continue to target anyone that enters the entertainment precinct with drugs.

"We want these venues to be safe for all patrons and we encourage all community members, including those who work in the entertainment sector, to provide us with information about drug dealing.

"We do not want our young adults subject to brazen drug dealing in the entertainment precincts."