Source: Wrestling Observer Newsletter
Goldust was scheduled to return to WWE as a full-time performer, but it looks like that idea is out the window now.
On Friday, May 25, Dustin Rhodes agreed to make an appearance at the SNME taping the very next Monday. As you saw on Raw, WWE did a major advertising spot for it, but without Dustin's final commitment. However, Dustin called WWE soon after back (after they made the advertising spot no less) and cancelled, saying that he had a prior booking on Monday, May 28, the same day as the SNME taping. He also said that his chronic bad back was giving him too much trouble. Dustin also cancelled his appearance at the Bad News Brown tribute show on May 25. Dusty Rhodes was asked to intervene in the situation, but he said he didn't want to mix business with family.
When Vince McMahon heard about Dustin backing out, he got mad and decided that he didn't want any non-contracted people appearing on the show. When Vince was making the decision, Mike Bucci was talking to Kamala. Kamala was originally advertised to wrestle in the "freaks" match at the SNME taping, but due to all this, he lost his place on the show.
Dustin picked a bad time to back out, or if his injury was that severe, it couldn't have come at a worse time. Raw writer Brian Gewirtz had gotten approval for Dustin Rhodes to get a full-time WWE contract and for him to return to the company as Goldust. He would have gone back to his original persona when he was a major heel, but with a few adaptations due to the changing of the times. And due to the lack of depth on Raw, he was going to be a major heel this time around.
In fact, WWE had plans for him to feud with Santino Marella to help get him over in a high-profile feud. There were also tentative plans for Goldust to work with both Triple H and John Cena by the end of the year. Although, that was dependent on him getting his heel persona over. Unfortunately, all of these possibilities look to be out the window because Goldust backed out of appearing at the Saturday Night's Main Event taping after he agreed to.