diff --git a/mod/lti/mod_form.php b/mod/lti/mod_form.php
index 077ad68fbba..c77f72d4f18 100644
--- a/mod/lti/mod_form.php
+++ b/mod/lti/mod_form.php
@@ -298,7 +298,7 @@ class mod_lti_mod_form extends moodleform_mod {
         $mform->disabledIf('instructorchoicesendemailaddr', 'typeid', 'in', $toolproxy);
 
         $mform->addElement('advcheckbox', 'instructorchoiceacceptgrades', get_string('accept_grades', 'lti'));
-        $mform->setDefault('instructorchoiceacceptgrades', '1');
+        $mform->setDefault('instructorchoiceacceptgrades', '0');
         $mform->addHelpButton('instructorchoiceacceptgrades', 'accept_grades', 'lti');
         $mform->disabledIf('instructorchoiceacceptgrades', 'typeid', 'in', $toolproxy);
 
diff --git a/mod/lti/tests/behat/renametool.feature b/mod/lti/tests/behat/renametool.feature
index 48eee71af4c..e1d10c93397 100644
--- a/mod/lti/tests/behat/renametool.feature
+++ b/mod/lti/tests/behat/renametool.feature
@@ -21,6 +21,7 @@ Feature: Rename external tools via inline editing
     And I am on "Course 1" course homepage with editing mode on
     And I add a "External tool" to section "1" and I fill the form with:
       | Activity name | Test tool activity 1 |
+      | Accept grades from the tool | 1 |
     And I set the field "Edit title" in the "li#section-1" "css_element" to "Test tool activity renamed"
     And I navigate to "Setup > Gradebook setup" in the course gradebook
     Then I should not see "Test tool activity 1"