diff --git a/mod/lti/lib.php b/mod/lti/lib.php
index b75f0aa4a1b..4a8d1edc360 100644
--- a/mod/lti/lib.php
+++ b/mod/lti/lib.php
@@ -240,7 +240,12 @@ function lti_get_course_content_items(\core_course\local\entity\content_item $de
 
     $types = [];
 
+    // Use of a tool type, whether site or course level, is controlled by the following cap.
+    if (!has_capability('mod/lti:addpreconfiguredinstance', \core\context\course::instance($course->id), $user)) {
+        return $types;
+    }
     $preconfiguredtools = lti_get_configured_types($course->id, $defaultmodulecontentitem->get_link()->param('sr'));
+
     foreach ($preconfiguredtools as $preconfiguredtool) {
 
         // Append the help link to the help text.
diff --git a/mod/lti/tests/lib_test.php b/mod/lti/tests/lib_test.php
index 2cd1acb6e8c..d8173017769 100644
--- a/mod/lti/tests/lib_test.php
+++ b/mod/lti/tests/lib_test.php
@@ -435,6 +435,13 @@ class lib_test extends \advanced_testcase {
         $this->assertContains($course2toolrecord->id + 1, $ids);
         $this->assertNotContains($sitetoolrecordnonchooser->id + 1, $ids);
 
+        // Removing the capability to use preconfigured (site or course level) tools, should result in no content items.
+        $teacherrole = $DB->get_record('role', array('shortname' => 'editingteacher'));
+        assign_capability('mod/lti:addpreconfiguredinstance', CAP_PROHIBIT, $teacherrole->id,
+            \core\context\course::instance($course2->id));
+        $course2items = lti_get_course_content_items($defaultmodulecontentitem, $teacher2, $course2);
+        $this->assertCount(0, $course2items);
+
         // When fetching all content items, we expect to see all items available in activity choosers (in any course).
         $this->setAdminUser();
         $allitems = mod_lti_get_all_content_items($defaultmodulecontentitem);