The singer-songwriter hoped to break off from a sell-out world tour to play in front of fans at the Erskine hall in Anstruther.
However, her gig has been cancelled following complaints from neighbours about noise levels.
Tunstall had asked organisers of the Homegame festival, an annual event in the sleepy East Neuk village, if they could find a place for her on the bill. Anstruther is just a few miles from St Andrews, where the singer grew up.
They pencilled her in to play at the venue in April, but were forced to cancel after Fife council ordered them to scale down the event following complaints from residents who live near the hall.
“KT said she’d love to play and agreed in principle to come back to Anstruther,” said Kenny Anderson, one of the organisers of the festival.
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“She’s gagging to play in the East Neuk, but without the guarantee of a date and a venue there’s no way she’d be able to commit.”
The festival is organised by Fence Collective, a group of Fife musicians of which Tunstall was a member before her career took off.
A year ago she was virtually unknown, but she has risen to become one of Britain’s most successful female musicians, selling more than a million copies of her debut album, Eye to the Telescope. She wowed crowds at Glastonbury and T in the Park and played sell-out gigs with Joss Stone in Europe and America.
She has had four Top 40 singles: Black Horse & the Cherry Tree, Suddenly I See, Other Side of the World and Under the Weather. However, according to friends she keeps in close contact with members of the collective.
She recently spent four days on the Isle of Skye, filming the music and visuals for her new DVD, which is due for release in the spring. Soon after, she expressed an interest in performing at the island’s music festival in the summer.
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Fence Collective has set up a petition to save the festival, garnering around 800 signatures from across the globe.
“It’s ridiculous how one person’s complaints can threaten the whole event. It’s an acoustic festival, not a death metal one,” said John Lynch, a member of the collective.
The Radio 1 DJ Edith Bowman, who grew up in Anstruther, and chart pop musician Jose Gonzales, are also backing the event.
Duncan Simpson, Fife council’s team leader for community services, said he was confident of finding a solution. “We think the festival is a great idea which we want to support,” he added.
“Yes, we’ve had some difficulties but we’re working with the guys and we’re keen to make this a positive event.”