According to a press release on Monday, the festival was originally scheduled to take place in January 2026 - around her 80th birthday - and was going to feature Parton as a performer and host.
Now, it will serve as a celebration of her legacy.
"We had the venue booked and we had the announcement ready to go. And then, in August 2025, Dolly had to take a step back after her initial health challenges. A lot of people always say, WWDD (What Would Dolly Do?), and, well, at this moment, Dollyfest is WDWD (What Dolly Would Do!)," organiser Danny Nozell, founder and CEO of CTK Enterprises, said in a statement.
"We are not discouraging people from celebrating Dolly in the ways they choose. However, as far as a traditional memorial goes, that is not something Dolly wanted," he continued.
"So, instead, it feels more appropriate for us to take a beat, let all the tributes that immediately make sense occur naturally, and then, see through this festival-style concept that was truly dreamed up by Dolly."
There was a private service for Parton on Friday attended only by immediate family, the Associated Press has confirmed.
There will not be a public ceremony, per Parton's wishes.
In May, Parton pulled out of a highly anticipated Las Vegas residency, which was due to begin in September.
She had already postponed her six-date run at the Colosseum Theatre at Caesars Palace from December 2025 to deal with "health challenges".
Born in Tennessee, Parton is best known for hits such as Jolene, 9 To 5 and I Will Always Love You.
She was deeply associated with Nashville throughout her career and was inducted into its Songwriters Hall Of Fame in 1986.
Over the course of her career, which spanned more than 60 years, Parton sold more than 100 million records worldwide and wrote more than 3000 songs.
Following her death last week, a number of Parton's records re-entered the United Kingdom charts, including Jolene, which featured at number nine in the singles chart on Friday.
Since her death, an airport in Nashville in Tennessee proposed changing its name in honour of the singer.
A musical about her life - Dolly: A True Original Musical - will also be launched next year on what would have been her 81st birthday.
A museum called Dolly's Life Of Many Colours, referencing her 1971 song and album Coat Of Many Colours, is also due to open in Nashville this year.
Performers, ticket information and dates for DollyFest are yet to be announced.
with PA
