American Horse of the Year California Chrome will race on next year with trainer Art Sherman ending speculation he will be retired.

The four-year-old is recovering from a bone bruise injury at Taylor Made Farm in Kentucky, prompting the speculation his racing career might be over.

Last week, Taylor Made bought the minority share from Steve Coburn, leaving Perry Martin as the majority owner of California Chrome.

Sherman says California Chrome will likely need three months of recovery and he will then return to his base at Los Alamitos Race Course in Southern California.

The trainer says California Chrome will be pointed toward next year's Pacific Classic at Del Mar.

The winner of the Kentucky Derby and Preakness last year, California Chrome's Triple Crown bid was derailed with a fourth-place finish in the Belmont.

California Chrome has not raced since his second in the Dubai World Cup in March.

Injury put paid to an English campaign and he was set to run in the Arlington Million on August before the latest problem was found.