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Remind your guest that you care about them very much and would really love to have them there, but that due to unforeseen circumstances, you are no longer able to accommodate them at your venue. Let them down gently, especially if you know they were excited to attend.
Both disinvite and uninvite are correct. The huge 1934 Merriam-Webster Unabridged (Webster's Second) had an entry for the verb uninvite, meaning ?to annul an invitation of,? but it also bears the label ?Rare.? It's not rare anymore and will be added to our dictionaries soon.
I suggest you apologize and briefly explain why you need to uninvite them. You may also want to invite them out another time to show you still care about them. For example, you could say, "I'm so sorry for the cancelation, but I realized I invited too many people to dinner tomorrow.
You can say something like: ?We know that we had previously invited you to the event, but sadly, circumstances dictate that we have to shorten the guest list. We are so sorry about the cancellation and we hope we can celebrate together at a different time."
You don't want to upset the host, but honesty is usually the best policy here. You can say something like, ?I'm truly sorry, but something urgent has come up, and I won't be able to make it.? It's always a good idea to let them know as soon as possible and apologize for the inconvenience.