The two-time Grand Annual Sprintcar Classic champion said the circumstances were similar to an Australian competition such as World Series Sprintcars.

"The way the contract for the World of Outlaws is, is that once you are contracted if they are racing the same weekend as another event you're not allowed to be racing anywhere else," he said.

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"Basically they just said I can't race due to the contract which I think is fair enough because if they let me race they have to let everyone."

It means the Warrnambool-based McFadden and Monte Motorsport won't race at Premier Speedway's Sprintcar Shootout, which has attracted more than 40 drivers, on Saturday night.

In the meantime the five-time World Series Sprintcar winner and his partner Zoe are anticipating the birth of their first child.

McFadden hopes to spend time with the newest member of their family before heading to America for his first full-time World of Outlaws season with Kasey Kahne Racing.

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Team owner Kasey Kahne will drive the number nine car until McFadden, who will still get show up points, arrives in America. McFadden hopes to race at Louisiana's The Rev on March 13.

Premier Speedway's COVID event management plan means ticket sales for Saturday night's Sprintcar Showdown, which also features super rods, late models and V8 dirt modifieds, are capped at 3000.

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