A woman will appear in court after thousands of dollars worth of ice was allegedly found concealed in the lining of her handbag.

The 41-year-old woman was searched by police patrolling Warilla on July 10 and allegedly found the drugs with an estimated street value of $58,000.

The woman was arrested and taken to Lake Illawarra Police Station, where she was charged with supply prohibited drug.

She was refused bail and is due to re-appear in Wollongong Local Court today.