Too Darn Hot will now head to Royal Ascot rather than the Derby after being upstaged by Telecaster in a surprise result to the Group One Dante Stakes at York.
Last season's champion European two-year-old gave his all - but his Derby dreams were ended as Telecaster took the spoils in the hands of Oisin Murphy for trainer Hughie Morrison.
Frankie Dettori had Too Darn Hot settled nicely in fourth and he was produced at the right time to make his challenge, only to find Telecaster (7-1) refusing to buckle in the closing stages as he stuck to his guns to beat the even-money favourite by a length.
Telecaster was slashed to 5-1 from 20-1 for the Derby while Gosden says Too Darn Hot will go back in distance to 1600m in the St James's Palace Stakes next month.
"Frankie said he didn't want to get closer to a nice, even pace, the winner used the pacemaker well," Gosden said.
"He (Too Darn Hot) was hard on the bridle and fresh.
"Frankie was clear in his mind that in the last furlong the lack of a race (told) - but also his stamina was giving out.
"We were here for a trial today to find out if we went for the Derby or the St James's Palace, and we'll run in the St James's Palace.
"I'm delighted with the horse, he might get 10 furlongs later in the year, but not fresh off a lay off."
Morrison was understandably thrilled with the performance of Telecaster.
"Too Darn Hot obviously needed the race and we've had runs this year, so that is to our advantage, but he (Telecaster) is obviously a pretty special horse," he said.
"It's been a big team effort as he is quite keen and on his toes, but that's him and that's what makes him so good.
"I haven't a clue how good he is. I've had nothing like him before and there's nothing I've got at home that can go with him."
Telecaster was previously taken out of the Derby and will now need to be re-entered at a cost of APS85,000.
Morrison is keen to let the dust settle before committing to a run in the premier Classic.