The 40-year-old was arrested during a surveillance operation in Lima targeting a drug trafficking organization called Britanica by authorities.
Nine people were arrested during the operation last month, including the Irish man and a British national. After police searched their rental car, they were found with 55 kilos of cocaine in suitcases.
The pair had been under surveillance since their arrival at Lima airport on July 21. Police suspected they were planning to smuggle the drugs into the UK.
Both men have now appeared in court and been remanded in custody while the judge conducts the investigation.
Under Peruvian law, anyone who promotes or facilitates drug trafficking can face a prison sentence of eight to 15 years, while someone caught in possession of drugs can face a prison sentence of six to 12 years.
Aggravating circumstances are also allowed, for example if the drug value exceeds 20 kg of cocaine paste or 10 kg of cocaine hydrochloride. These sentences can go up to 15 to 25 years.
Authorities suspect the men worked for a Bulgarian criminal living in Lima who is suspected of coordinating the drug network.
Footage of the Irish man's arrest shows him and his British co-defendant being thrown out of a car, before police open the boot containing the suitcases.
“What is this, sir?” the drug officer asks the men in Spanish, before opening the suitcases containing several blocks of what appears to be cocaine.
Peru is the second largest cocaine producer in the world
The Irish man passed out while police were searching the vehicle and was subsequently arrested.
Other photos and videos taken by police officers show the Bulgarian man meeting with several other suspects in shopping malls in Lima. Authorities suspect the suspects are finalizing drug trafficking plans.
In a statement, Peruvian police said they searched eight properties as part of the operation and arrested nine suspected members of the drug gang.
Police said the operation was “a major blow” to the gang and was part of a “fight against illegal drug trafficking”.
It was led by the anti-drugs unit Dirandro, which was also involved in the arrests of Northern Irish Michaella McCollum and Scottish Melissa Reid.
The so-called Peru Two were arrested at Lima airport in August 2013 after attempting to take a suitcase full of cocaine on board a flight to Spain.
They were later sentenced to more than six years in prison before being released in 2016.
Peru is the world's second largest cocaine producer. According to a recent Europol report, a third of the drugs consumed in Europe come from the South American country.
As coca eradication programs have been scaled back, production has increased in recent years.
Several high-value seizures, some by police, have caused the wholesale price of cocaine to rise from €25,000 to €40,000 per kilo.