Police officers found what they believed to be class A drugs in the car after blocking it in at traffic lights in Quarry Bank, Brierley Hill.
A 17-year-old boy who was in the Mercedes rammed one of the police cars that was blocking him before making a failed attempt to run away, officers from West Midlands Police Force Response said.
Cash, a basic mobile phone and wraps of the suspected drugs were then found in the car and the teenager was arrested.
The incident happened on High Street at around 3.30pm on Thursday.
West Midlands Police spokesman Craig Hughes said: "A 17-year-old boy has been arrested after police briefly pursued a suspected stolen car in Quarry Bank, Dudley at just after 3.30pm yesterday.
"A police car was rammed at low speed as the Mercedes came to a stop in High Street.
"A search of the vehicle recovered what is believed to be class A drugs.
"The teenager was arrested on suspicion of dangerous driving, failing to stop, possession of drugs with intent to supply and burglary.
"He remains in police custody for questioning."