Australian horse racing favourite Red Cadeaux "looks happy" and his injury should be repairable, according to trainer Ed Dunlop.

Red Cadeaux incurred a suspected fetlock injury after pulling up during the Melbourne Cup's closing stages, won by Michelle Payne aboard Prince Of Penzance.

Racing Victoria confirmed the 10-year-old gelding's injury, saying he had been taken to Werribee Vet Clinic for further assessment, after failing to finish.

He had been stabilised on track and his leg was put into a splint.

Red Cadeaux's jockey Gerald Mosse shows his anguish on the track. ( Getty Images: Vince Caligiuri )

Trainer Ed Dunlop said he was not expecting such good news when arriving at the clinic, saying he thought he would not see the horse alive again.

Dunlop said Red Cadeaux had been immediately retired.

"He's in great hands, and we're seeking a lot of advice and we will do whatever is best for the horse," Dunlop said.

"When I was on the grass, I thought we wouldn't see him alive again. He's alive and well, that's all I want to say.

"When we drove here I wasn't expecting as encouraging news with that injury.

"He's eating grass ... and he looks happy, he has fluids. It's a bad injury, but it should be repairable.

"We've discussed three or four times we were going to retire him and we haven't retired him. All seemed very well with him but unfortunately it wasn't to be.

"I thought he was going to be put down. At this stage he hasn't, he was obviously immediately retired. If the guys do their job, he'll have a very happy retirement."

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University of Melbourne vet Dr Chris Whitton said the injury is not currently life threatening but Red Cadeaux will not race again.

The vets are talking to other world-leading equine orthopaedic surgeons to come up with a plan to repair the injury.

Dr Whitton said Red Cadeaux will not undergo surgery on Tuesday, given the horse is comfortable, and several options are being considered to treat him.

Red Cadeaux famously lost out to Dunaden in the 2011 Melbourne by mere millimetres, before running eighth to Green Moon in 2012.

He was runner up in 2013 and 2014, behind Fiorente and Protectionist respectively.

Red Cadeaux's Cup trips have earned him nearly $3 million and helps make him the winner of more prize money than any other British horse in history.

ABC/AAP