Owner Bob Peters’ Morley Growers Market-Challenge Stakes (1500m) representation has been cut to one following an accident to Magical Dream.
Peters and co-trainers Grant and Alana Williams are still set to play a major hand in the race with Western Empire, but Magical Dream won't be taking her place in the $100,000 Listed feature.
"She trod on a shoe last night (Wednesday) and pulled a part of her hoof off," Peters said on Tabradio.
"She'll be going back to the farm.
"She was ready to go and gets within two days of the race.
"She's unlucky and won't be racing now."
Magical Dream, a Listed Belgravia Stakes (1200m) victor last October, was considered a top chance after her return win at Ascot a month ago.
The Dream Ahead filly was on the third line of TAB betting behind Western Empire and Kissonallforcheeks before her scratching.
Peters said a decision on Western Empire targeting the Australian Guineas (1600m) at Flemington on February 27 will be held back until after the Challenge Stakes.
Coming off a Bunbury maiden victory, the Iffraaj gelding has drawn barrier two and will be ridden by Chris Parnham.
"Obviously, he has to run really well," Peters said.
"Hopefully, he can win.
"This (Challenge Stakes) is a Listed race and he would going into a Group 1 (Australian Guineas) over there.
"You would think he would have to run really well in this race to justify getting on the plane."
Peters hopes Western Empire can follow in the same path as Superstorm.
The son of Sebring won last year's Challenge Stakes before going over east.
Superstorm ran second to Alligator Blood in the Australian Guineas and filled the same placing behind stable mate Regal Power in the All Star mile.
Peters said Western Empire and Superstorm show comparable traits.
"Their similar," Peters said.
"Similar that they took a bit of time to learn what racing was all about.
"I felt each time they did race they improved that little bit in their manners.
"This fellow (Western Empire) is the same.
"I think he gets better with each start.
"Hopefully, he can continue to do that."