Police re-arrested the nephew of Ita Buttrose today - hours after a court released him on bail - following the discovery of $1.3 million in cash and nearly eight kilos of cocaine in a Darling Point house they believe he owns.

His wife, Pollyanna, is due to give birth on Monday.

Richard Buttrose and, right, the cash and drugs police found at a property they believe he owns. Credit:Dallas Kilponen and NSW Police

Richard William Buttrose, 36, was arrested on Wednesday in his car near his multimillion-dollar Paddington home, following a six-month undercover operation in which he allegedly twice sold a police officer eight grams of cocaine.

He appeared at Central Local Court yesterday and was bailed on six charges of supply and possession of cocaine.