The drugs were seized earlier this week after police decided to perform a routine check on a taxi travelling in the Zia Lisa district of Catania, near the Catania-Acquicella train station, Rai news reported.
But during the check police became suspicious about the nervous behaviour of the taxi's sole passenger, Giuseppe Vasta, a 27-year-old from Catania.
Officers therefore decided to search the boot of the vehicle, where they found a bag containing supplies from the butcher's shop, including a large amount of the 'nduja sausage.
But hidden among the traditional spiced sausage was another parcel containing 1.3 kilograms of cocaine.
Vasta was arrested for possessing the illegal drug. The taxi driver escaped punishment after police ascertained he had been oblivious to the whole affair.
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Police said the drug was destined for the black market around Catania and had a street value of over €150,000.
The discovery is just the latest in a string of recent cocaine seizures by Catania police. Over the last two months, more than 75 kilograms of the illegal stimulant have been seized in and around Sicily's second biggest city.