Rotherham-based Paranormal-X PXTV had planned to gather in Rawmarsh last weekend but St Mary's Church threatened legal action if they went ahead.
The parochial church council (PCC) erected a sign warning against the event going ahead, saying it went against its Christian values.
It read: "The PCC wishes to clearly state that this is a Christian burial site and the planned event is in direct contradiction to Christian doctrine as understood by the Church of England.
"Paranormal-X have no permission to gather in these grounds for the planned purpose, and should the event go ahead, the organisers may be subject to legal proceedings."
Paranormal-X PXTV, which was founded in 2015, has visited the church in the past, including during two occasions in the summer of 2016.
Founder and psychic, Mark Smith, told Premier: "I understand the church's perspective, given their beliefs which are based on doctrine and scripture but I do think it was a little unfair.
"It [the church] has got a public right of way. As far as I was concerned, I wasn't doing anything wrong.
"It's not like we were going in there causing criminal damage or being disrespectful."
Premier approached St Mary's but the church declined to comment.
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