The Ballarat cyclist's decision comes after crashing near Colac this morning.

The Ballarat cyclist was among a group of five riders to fall 8km out of Colac.

Great Britain's Ben Greenwood has also withdrawn from the competition.

This morning's fall was Shaw's second crash is as many days.

Yesterday, Shaw, 23, fell inside the first five kilometres and limped home near the tail of the field, more than 18 minutes behind stage winner Jaan Kirispuu.

On a brighter note, Bendigo rider Zac Dempster who looked like he was out of the race after crashing late yesterday, did make it to the starting line.