The car was sighted by officers a short time later on Parramatta Road in Haberfield, with sparks coming from the front rim.
Officers stopped the car on Haberfield Road, before they discovered the tyre was completely shredded off the rim.
A NSW Police spokesperson described the incident as a "catastrophe waiting to happen".
A 68-year-old man from Ermington undertook a roadside breath test which came back as negative.
Police however said they formed the opinion that he was allegedly under the effect of drugs.
"He was placed under arrest for the purpose of obtaining a blood and urine sample to determine the level of impairment," a police spokesperson said.
"Police made observations and formed the opinion that he was under the effect of drugs.
"A search of the man located within the right pants pocket were 3 cut outs of the prescription drug 'Fentanyl'."
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The man was taken to Royal Princes Alfred Hospital under police guard.
The spokesperson said the vehicle was major grounded with a red label and defect notice. His key was also confiscated.
Police will await for the results of the blood and urine samples before taking further action.
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