Gai Waterhouse's hopes of back-to-back Melbourne Cups are over with The Offer out of this year's race.

Waterhouse won her first Melbourne Cup with Fiorente in 2013 and The Offer had been the early favourite this year after winning the Sydney Cup in the autumn.

Racing Victoria stewards confirmed on Tuesday The Offer had been taken out of next Tuesday's $6 million race at Flemington.

The Mike Moroney-trained Araldo is now No.23 in the order of entry for the 24-horse field and will not have to run in Saturday's Lexus Stakes.

The winner of that race is exempt from a Cup ballot and Moroney had been deliberating whether to run Araldo or take the chance he would not be pushed out by another horse.