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All horses stabled around the German course were placed in lockdown the night of Oct. 1.
Patrick Barbe, spokesman for Danedream's part owner Teruya Yoshida, told the Post: "The horse that tested positive was stabled far away from Danedream and is not one of Peter Schiergen's horses. It was only one positive test, and that horse has been removed from the area, but the stables in and around the racecourse have had to be quarantined. Danedream is in perfect health, cantering well and eating well, and is not involved at all in this, but we must abide by the decision of the German authorities. In my opinion her prospects of traveling are only very small, but we are awaiting official news from the authorities."
Danedream, whose other co-owner is Gestut Burg Eberstein, is likely to be tested for EIA again in the next couple of days.
The outbreak has created havoc for bookmakers. According to the Post, Betfair suspended its Arc market while several bookmakers removed Danedream from their betting.
One firm to remove Danedream was William Hill, which will make Japanese runner Orfevre its new favorite at 3-1. Camelot, whose attempt to sweep the English Triple Crown ended with a loss in the Ladbrokes St. Leger Stakes Sept. 15, is the firm's co-second-favorite at 4-1 with Nathaniel, runner-up to Danedream in the King George VI and Queen Elizabeth Stakes at Ascot in July.
Danedream was Germany's 2011 Horse of the Year as well as a French and Italian champion last year.