Warloe was arrested on Saturday, TV 2 reports.
Police found a small quantity of what they believe to be amphetamines after entering the politician’s parliament-owned apartment with the permission of the Stortinget’s security guards.
The arrest came as part of a sting operation in a major narcotics case, police said.
Six people have so far been arrested and held in connection with the case, newspaper Romerikes Blad reports.
The first arrests were made in January, when two Lithuanian nationals were apprehended with two kilos of amphetamines in a car.
When questioned by police, Warloe admitted using drugs at an earlier juncture but denied any involvement in the current case.
“He hadn’t been to the apartment for a while,” defence lawyer Erling O. Lyngtveit told TV 2.
“An acquaintance of his has had access to the apartment and he is of the opinion that this acquaintance should have to answer for this. He himself has no knowledge of that what was found by the police.”
The 50-year-old Warloe was previously councillor for finance, culture and trade in Bergen.
Until his arrest, he was deputy leader of the Hordaland branch of the Conservative Party (Høyre) and was a member of parliamentary committees on religious affairs, education and research.
Warloe has resigned from all party posts but retains his seat in parliament.
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The politician’s 31-year-old acquaintance has been charged with serious drug offences but said Warloe had no knowledge of drugs being kept in his apartment, newspaper Dagbladet reports.
The 31-year-old suspect operated as a drugs courier, shuttling narcotics to Oslo buyers, the newspaper said.
A third Lithuanian, an Italian, and a 35-year-old Norwegian-Pakistani man have also been charged in the case.