Philippine police arrested two Taiwanese men and a Chinese on Sunday in a sting operation that netted illegal drugs worth over two million dollars, officials said.

The three were caught selling more than two kilos (4.4 pounds) of the banned stimulant crystal methamphetamine hydrochloride, more commonly known as "ice" or "shabu", to an undercover agent, police said.

Agents also found drugs in the suspects' vehicle.

"We believe they are selling two kinds of 'shabu', one priced lower and one with a higher price imported from another country," task force head Superintendent Ismael Fajardo said on national radio.

He said the bogus transaction took place at a car park of a hospital in Manila and agents pounced on the trio after marked money changed hands.

The Philippines has been stepping up its fight against drug traffickers after concerns the archipelago country's vast shoreline made it a favourite shipment point for illegal drugs.