The Melbourne Cup will be crowd-free, with connections unable to attend next Tuesday's event.
But the Victorian Government has announced a crowd of up to 25,000 will attend the Boxing Day Test at the MCG.
Victorian Racing Minister Martin Pakula confirmed there will be no crowds at Flemington, despite the easing of the city's restrictions.
"The view the government came to was it wasn't appropriate in the circumstances to have hundreds of owners congregating at Flemington next week," Mr Pakula told reporters on Wednesday.
"There will be a time for that but next week is not that time."
He said the Victoria Racing Club was "understandably disappointed" with the call.
It came a week after the government initially allowed connections to attend the Cox Plate at Moonee Valley, but quickly reversed the decision after widespread backlash.
"I think the community sentiment in regards to the Cox Plate was pretty clear and I don't think it would have been particularly different in regards to the Flemington Carnival next week," Mr Pakula said.
The government also announced on Wednesday that it would develop a plan with Cricket Australia and the Melbourne Cricket Club so some fans can attend the Boxing Day Test.
It will be capped at 25,000 per day - a quarter of the MCG's capacity - but there is scope for the capacity to be revised, with Mr Pakula describing it as an "estimate".
"We've been really clear with Cricket Australia and the MCG that we'll make final decisions about numbers closer to the day, depending on the epidemiological situation that abides at the time," he said.
"At this stage, that's what we believe would be the safe and appropriate number per day here at the MCG."
Mr Pakula said it was "unlikely" the figure would rise, although there was a caveat.
"I wouldn't rule out that if things go exceedingly well between now and Christmas that some conversations are possible," he said.
The crowd plan came as the state government confirmed a new agreement between the Melbourne Cricket Club and CA that ties the Boxing Day Test to the MCG for another three years, until 2022.
This year's Test against India will be the 31st time that the MCG has hosted the Boxing Day fixture.
Mr Pakula said he was "never very concerned" the devastating second wave of COVID-19 would mean that Victoria lost the Boxing Day Test to a rival state.
"Melburnians have been incredibly resilient," he said.
"They've sacrificed a lot ... and to have our wonderful MCG with people back in it, hosting one of the great sporting events on the global sporting schedule ... I think will be wonderful for Melbourne's spirits."
