"If they're brave enough and actually want to give Hughie (Morrison) a hearing and get Ian (Wright), the international expert in CT scans on the phone and the other two vets that have worked with the horse and Hugh Bowman, who rides the horse, in a room to discuss the processes and then make a decision, that's fine," O'Neill said.
"That's the only option there is. They need to be game enough to reinstate the horse and come down to a time when they're happy — Friday afternoon, whatever — but they need to get all the experts involved to have a clear understanding of the situation.
"We don't want to be in a position where we cause any danger for the horse, but at the end of the day they need to be reading and understanding the information correctly and I don't believe they are."
O'Neill questioned RV's process regarding the vetting of international horses, suggesting the vet who makes the call in Australia should be involved in the initial process overseas.
"What happens in September, for people that don't know, is horses that are travelling over internationally get vetted (in their home country)," O'Neill said.
"We (Racing Victoria) don't even send Grace (Forbes, RV's head vet) over to vet the horses. So, they're vetted internationally, and videos are sent back here and then if Grace and her panel or the vets or the people that are working, approve the process, then they're able to come."
O'Neill also wanted to correct information surrounding why Marmelo underwent a CT scan.
"The information that's gone out in relation to this horse being sore is incorrect. It's factually incorrect," he said. "This horse has never missed a gallop, he's never missed a beat, he's never been scratched from a race from being sore. The horse is bounding out of his skin and he's ready to go. The horse is a 7-year-old stallion. He can't trot. He didn't trot last year, he didn't trot the year before.
"So, the reason the CT scan was called, I believe, is because the horse didn't trot, not because he was sore. That is factually incorrect and I want to put that on the record."
Marmelo was not the only international raider ruled out of next Tuesday's race, with the Charlie Appleby-trained Ispolini also withdrawn due to a scan that indicated ''pre-fracture pathology within the horse's right front cannon bone''.