Merion's first defeat has not changed trainer Mike Moroney's opinion the gelding is one of the best three-year-olds in Victoria.

Merion won his only two starts as a two-year-old, including the Listed Anzac Day Stakes, with Moroney convinced the son of O'Reilly had the potential to be a contender in feature three-year-old races this spring.

He stepped out for his first start of the new season in the Mitchell McKenzie Stakes (1200m) at Moonee Valley on August 23 and finished fourth behind Rich Enuff.

Moroney is looking forward to him getting back to Flemington in Saturday's Listed Living Legends Stakes over 1400m in a field which includes Caulfield Guineas favourite Chivalry and boom colt Divan.

"Watching him on the training track, I think he's got the talent that we thought he had," Moroney said.

"I suppose he's one of about a dozen three-year-olds that are looking reasonably smart here in Victoria.

"It's just the ones that go on with it, I suppose.

"He was lightly raced at two and you'd expect him to be one that can go on with it on what we saw of him as a late two-year-old.

"And it looked as if the further he was going to go the better he was going to be."

Merion's Listed win last season came over the track and distance of Saturday's race.

"We've got him pretty forward now and he's back to Flemington where it's a bit roomier for him. I expect him to improve a lot," Moroney said.