The 32-year-old endurance motorcycle rider, who previously lived at Singleton and Maitland, was sitting third overall having completed 352 kilometres of the Neom circuit but then took a wrong turn along with Xavier de Soultrait.

Dakar Rally posted an update on their social media platforms at 10.17pm (AEDT): "After getting lost looking for a way-point on the last part of the special, Toby Price and Xavier de Soultrait have lost the advantage they accrued thanks to a good start to the stage. The title holder has finished 35 minutes behind the day's winner, whilst the official Yamaha rider completed the stage 48 minutes behind Brabec."

Around 40 minutes earlier: "Toby Price and Xavier de Soultrait are currently lost 900 metres from the right track and are trying to find their way back. The Australian and Frenchman, who were in the top four on the special at the last check point, are losing precious time."

Price remains ninth overall and was 12^th for the stage. His overall time is 11 hours, 56 minutes and 19 seconds (11:56.19). He reached the latest check point in 4:43.23.

Ricky Brabec (11:17.56) now leads the way, 15 minutes and two seconds ahead of his nearest rival.

Title holder Price won the opening leg on Sunday, but dropped to ninth following stage two.

"A very challenging day with our first super marathon stage complete," Price said on Monday.

"Navigation today was really difficult and the conditions were tricky with so many lines to choose from.

"Starting first is always going to be a disadvantage and today was a day I knew the rest of the field would make time on me.

"I don't plan on starting first too many more times after my efforts today but I'm feeling good, the bike is in good shape for tomorrow."

Wednesday's fourth stage takes in the Nabatean temples between Neom and Al Ula.