Police acted on information in relation to the former Avenue Bar and Restaurant in Rolfe Street on Friday morning (August 1).
Police carried out a raid at the derelict venue and found around 300 cannabis plants, Class A drugs and cash.
Following further searches, officers recovered a gun, which was found later to be an imitation, hidden inside a printer.
A 22-year-old man was arrested on suspicion of producing cannabis, possession with intent to supply drugs and possession of an imitation firearm. He has been bailed pending further enquiries.
The gun recovered by police (Image: West Midlands Police) A spokesperson for West Midlands Police said: “The warrant was executed by the Sandwell Priority Crime Team alongside officers from our Smethwick and West Bromwich neighbourhood teams.
“It followed information received via the Operation Fearless team in Birmingham, as our teams work together to tackle crime.
“Drug dealing and firearms have no place in our communities and we are committed to taking drugs and weapons off the streets of Sandwell”.