The men, aged between 18 and 24, were reported to have been in a grey Audi A3 outside a club on Trent Street watching passers-by and then following them.
Officers used Section 60 powers which are in place in the area following the tragic murder of Cody Fisher and a stabbing in Handsworth on Wednesday, to stop and search the vehicle.
One of the occupants was found to be in possession of a machete and drugs were also found.
Police are now appealing for information from anyone who was approached on Trent Street in the early hours of this morning or who saw anything suspicious and hasn’t already spoken to them.
Police can be contacted via Live Chat on the West Midlands Police website quoting log 396 of 30/12 or talk to Crimestoppers anonymously on 0800 555 111.
