Greatwood is set to be Highclere Thoroughbred Racing's representative at Royal Ascot with Michael Stoute deciding to hold Telescope back for later in the season.
Neither of the colts took part in last weekend's Investec Derby as Telescope, who has not appeared since September, had required treatment for grazed legs and was unimpressive in a pre-Epsom workout at Lingfield.
Stoute ruled him out of the Derby with a sore shin, while the Luca Cumani-trained Greatwood was disappointing when only seventh to Derby runner-up Libertarian in the Dante Stakes at York.
Highclere's managing director Harry Herbert had been to see both horses in Newmarket on Wednesday morning and said: "Telescope is absolutely fine, he's 100% but Sir Michael wants to back off him now.
"He doesn't want to rush him to Royal Ascot so he's not going for the King Edward VII Stakes and to be honest, there's no immediate plan.
"After the problems before the Derby, he feels it's time to regroup and it's his intention to bring him back for a late-summer and autumn campaign and towards next season as well.
"I'm not sure what Sir Michael will look at, I suppose the Great Voltigeur Stakes has to be a likely target for him, whether he would run before then, the horse will tell him. He's still an exciting horse for us."
Of Greatwood, Herbert said: "All being well, he'll run in the King Edward VII.
"I saw him and he looked in great shape. Luca said he worked very well on Saturday, as well as he has ever done."