The 3-year-old colt, owned by Sheikh Mohammed’s Godolphin, finished 14th behind Mine That Bird in the May 2 Derby at Churchill Downs.
Godolphin racing manager Simon Crisford said he doesn't expect the injury to be career threatening. The chip was discovered during a series of X-rays taken after the Derby.
Crisford said he's hopeful Desert Party can return to the track during the second half of the year and continue to run in 2010 as a 4-year-old.
Desert Party, by Street Cry—Sage Cat, by Tabasco Cat, was purchased for $2.1 million at the 2008 Fasig-Tipton Florida February sale of 2-year-olds in training. He has won four of seven starts and earned $688,467.