The application was put forward by One Love Tennis Community Interest Company on behalf of the academy.
The academy rents courts at King’s Ely, in the city near to Stuntney, but said it had limited access to the courts and had been told its use would soon end.
According to the Local Democracy Reporting Service, councillors had expressed support for the academy but reluctantly refused the application.
One Love Tennis took its appeal to the Planning Inspectorate, which issued its decision on Monday, external.
Its report acknowledged it was not known whether bats were in the area, but that the nearby hedgerow and reservoir made it an “ideal location” for the animal.
“I attribute significant weight to this harm and consider it to be decisive,” said the planning inspector.
“The benefits do not outweigh the collective harm that would arise from the development as a whole.”
The planning inspector accepted there were no alternative sites available, and the location at Stuntney would have otherwise been suitable.