The eight-year-old lined up in the three-mile Grade Two in an attempt to find out whether a tilt at Cheltenham Gold Cup glory could be considered, but after being outstayed by the impressive Native River, Cloudy Dream is set to come back in distance for the Ryanair on the Thursday of the showpiece fixture.
Trainer Ruth Jefferson said: "He's come out of the race at Newbury fine. We took him out of the Gold Cup and he'll go for the Ryanair, that's the plan."
She continued: "He always runs well wherever he goes, but I do think he's a better horse on spring ground.
"You'd like to think he'll have a chance of getting that when Cheltenham comes around, so we'll see."
Cloudy Dream has won three of his 11 starts over fences, filling the runner-up spot on the other eight occasions.
The Trevor Hemmings-owned grey chased home Altior in the Arkle at last year's Festival and is a general 16-1 to go one better in the Ryanair.
Select any odd to add a bet