The 2800m-Listed race at Flemington on May 25 had been earmarked for Ghostwatch with this year's race doubling as a Melbourne Cup qualifier with the winner to earn a ballot exemption into the 2019 Cup at Flemington in November.
Racing Victoria said on Twitter on Friday Appleby had advised Ghostwatch would no longer be making the trip to run in the race.
“Unfortunately Ghostwatch has met with a setback during training so he will not make this trip, but we will be looking towards getting him back for the Spring Carnival,” Appleby said.
The race has also been reduced from 3200m to 2800m and is now restricted to three, four and five-year-olds under weight-for-age conditions.
The Appleby-trained Cross Counter won last year's Melbourne Cup.