Illicit drugs worth up to $40,000 and a large amount of cash were found at the scene of a deadly collision between an e-bike rider and a police car in Sydney’s inner-city this morning.

Investigations have been launched into how the 48-year-old Indigenous man riding the electric bike died on Allen Street in Waterloo.

In an update, Assistant Commissioner Peter McKenna, of the NSW Police’s Central Metropolitan Region, said an acting sergeant was driving the police car when the vehicle and the e-bike hit each other about 3am.

“I don’t know what the officer’s intent was at the time, but that will all form part of the investigation,” he said.

The police officer immediately rendered assistance before paramedics arrived, but the man died at the scene.

Early this morning, the man’s body could be seen on the road. The police car was on an embankment and a road sign knocked over.

Police found drugs, allegedly three ounces of methamphetamine, or ice, worth $30,000 to $40,000 at the crash site as well as $10,000 in cash.

“So in normal circumstances, if we found that amount of drugs and cash on anyone, we would allege it is on their person for the purpose of supply,” McKenna said.

Police records established the man was Indigenous and officers were in the process of contacting his next of kin.

A critical incident investigation has been launched into the man’s death. It will examine the police actions in the lead-up to the fatality.

The findings will be reviewed by the Professional Standards Command with oversight by the Law Enforcement Conduct Commission.

A report will be prepared for the information of the coroner.