Daniel McDonell 29, of Coulson Court, was remanded in custody on Tuesday following an unsuccessful bail application.

He has already spent 155 days in custody on remand following his arrest on May 11.

Magistrate Mark Stratmann said it was "a very difficult matter" and thanked lawyer Jarrod Williams for his "superior submissions" to the court.

Mr Stratmann said the bail application passed the "exceptional circumstances" test but he was not satisfied that the risk of Mr McDonell reoffending could be reduced to an acceptable level.

The magistrate said he accepted Mr McDonell had a good work ethic and insight into his offending while in custody, as well as strong family support and the offer of a $3000 bail surety.

But, he said Mr McDonell had previously been convicted of drug trafficking which he said was not only "destructive to the lives of people directly involved but also to weak and vulnerable people in the community".

Mr Stratmann said Mr McDonell had poor compliance on an 18-month corrections order and was charged with "deliberately interfering with a police investigation".

"It raises a real unwillingness to follow direction and comply with the law," he said.

Mr McDonell was refused bail and remanded in custody until November 6 for a committal hearing.

Earlier: A Hamilton man charged in relation to an alleged south-west drug ring, including selling drugs and attempting to pervert the course of justice, has appeared in court.

Daniel McDonell 29, of Coulson Court, appeared in the online division of Warrnambool Magistrates Court charged with drug trafficking, possessing the proceeds of crime and attempting to pervert the course of justice.

He was arrested in May during mass police raids that they said shattered an alleged major drug trafficking network operating across south-west Victoria and south-eastern South Australia.

McDonell was refused bail on May 11 and has remained in custody since.

Detective Senior Constable Nick Roberts, of the Hamilton police crime investigation unit, told the court a Victorian Supreme Court warrant uncovered numerous messages between William Orde and Mr McDonell with references to drugs being purchased from South Australia and sold in Hamilton.

Mr McDonell allegedly sent Mr Orde a photo of himself holding wads of cash and said he had "everyone in Hamilton topped up and waiting for them to chew through (the drugs)".

Detective Senior Constable Roberts said Mr Orde crashed a black Jeep on the Hamilton Highway in Stonehaven, west of Geelong, on April 8. The vehicle was registered in Ms Goodwin's name.

Mr McDonell, Lily Goodwin and Mr Orde then formulated a plan to pay Tory Muller, 30, of Allansford, $4000 to tell police he was the driver of the vehicle at the time of the accident, the court heard.

Detective Senior Constable Roberts said a raid at two Hamilton properties on May 8 uncovered 39 grams of cannabis, 12 grams of speed, six grams of ketamine, 28 grams of cocaine, 17 grams of methamphetamine, 26 grams of MDMA and prescription medication.

Police also seized over $5000 cash believed to be proceeds of crime and drug paraphernalia, including 12 ice pipes.

At the time of the alleged offending Mr McDonell was on a corrections order after being convicted in June 2019 of trafficking ice, trafficking ecstasy and possessing cocaine.

He was placed on the order after serving 180 days in jail.

Detective Senior Constable Roberts said he believed that if Mr McDonell was released on bail he would continue to reoffend and interfere with witnesses, including Ms Goodwin and Mr Muller who were on bail.

He said Ms Goodwin and Mr McDonell were engaged and it was "naive to think they're not going to make some sort of contact" if he was released from custody.

Lawyer Jarrod Williams said strict bail conditions could prohibit Mr McDonell from contacting the co-accused, using drugs and leaving the house at night.

He said Mr McDonell was a "hard worker" who would reside with his parents.

He said Mr McDonell had already been in custody for 155 days and significant court delays due to COVID-19 could see the matter finalised as late as 2022.

The bail application will continue on Tuesday.

Have you signed up to The Standard's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in the south-west.