It follows a joint operation by the States police and Customs into what they have described as an organised crime group involved in the distribution of class A drugs into the island.
The men, aged 37 and 40, were arrested on Monday night, according to a statement released on Wednesday.
The drugs had been hidden in a tupperware bowl in a wooded public area in St Helier.
The two men were found nearby and arrested a short time later on suspicion of possessing class A drugs with intent to supply.
The two men have since been released on bail while the investigation continues.