In what has become a major embarrassment for the Paris police force, the 34-year-old officer was arrested on Saturday on suspicion of stealing the drugs, with an estimated value of two million euros (USD 2.7 million).
He was picked up while on holiday in the southern city of Perpignan. "Most of the money seized was in the backpack he was carrying at the time," said the source.
His detention has been extended beyond an initial period of 48 hours, the source said.
In addition to the 20,000 euros, police also found several telephones and computers during their searches.
Interior Minister Bernard Cazeneuve has described the allegations as "extremely serious" and said the officer -- who has not yet been named -- had been temporarily suspended.
The drug haul was seized last month and had been kept in a secure room in the police headquarters overlooking the Seine River close to the Notre Dame Cathedral.
Authorities are checking to see whether there are accomplices, either within the force or external.
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