The cash found at a police sports club in Belfast was from the £26.5 million Northern Bank robbery, police confirmed.
The Police Service of Northern Ireland said £50,000 of new notes were discovered in toilets at the Newforge Country Club.
The club was searched late on Friday after a phone tip from a man claiming he was a police officer.
A PSNI spokesman said tonight that they could confirm the money was in five shrink-wrapped packages, each containing £10,000 in new Northern Bank notes.
"The notes bear consecutive serial numbers which correspond to the numbers notified to the police by the bank," said a spokesman.
Police said the money was thought to have been planted in a bid to divert attention from the crisis engulfing the IRA and Sinn Fein following the seizure of more than £2 million by Irish police investigating an alleged major IRA money laundering operation.
The RUC Athletic Association said it had sought to build relationships with the local community through its sports teams, adding: "It is of great regret to the association and its members that others have sought to exploit this increased integration."
PA