Stakeswinner Malavio is out of Saturday week's Villiers Stakes due to a knee complaint.

Fears the Festival Stakes winner could do irreparable damage if he pressed on convinced connections not to persist with his summer campaign, nor rush him back for the autumn.

Trainer Steve Englebrecht said scans had revealed arthritic changes in Malavio's near-side front knee.

The four-year-old, who won the Listed Festival Stakes at Rosehill on Saturday, would have been among the leading fancies for the Group Two Villiers (1600m) at Warwick Farm on Saturday week.

"He's just got arthritic change going on in his knee and if we press ahead we could do irreparable damage to him," Englebrecht said.

"So we're pulling the pin on him now with a view to the future."

The trainer said Malavio would be assessed as he spelled but would be in the paddock for a minimum of three months.

"Whether we can get him back in time for the winter for a Stradbroke Handicap depends on the healing time and him," Englebrecht said.

"Autumn is out but he could be a Brisbane winter horse or he could have a little light preparation through the winter and then come back for the spring for an Epsom.

"There's plenty of options for him, he's only a young horse, so there's no great hurry for him."

Englebrecht said Malavio jarred up after the Festival Stakes and when the gelding didn't improve enough for his liking, he got a veterinary assessment.

Despite the disappointing news, Englebrecht is optimistic about Malavio's long-term future.

"It is (disappointing) but I've had worse news and he's still going to be a viable proposition, whereas, if we pressed ahead to the Villiers he may not have won it and might have done some irreparable damage," Englebrecht said.

"We've done the right thing."

While Malavio's summer campaign has come to a halt, his younger half-sister She's A Girl takes another step towards her racetrack return in a barrier trial on Friday.

"She's a different type of horse to him but I think she's got a lot of ability," Englebrecht said.

Englebrecht has pencilled in a race on Boxing Day for the filly's return pending her trial performance.