Australian rapper Iggy Azalea has missed out on the Artist To Watch gong at the MTV Video Music Awards (VMAs).

The provocative singer, who grew up in NSW, was nominated for her Work music video.

The 23-year-old lost the award to pop singer Austin Mahone for What About Love.

The singer's name started trending on Twitter following the announcement, as fans sent her messages of consolation.

"Iggy Azalea definitely deserved to win," wrote @steevrae.

"BBGURL IM SO SORRY MY HEART IS BREAKING 4 U," wrote another fan.

"This why I don't watch MTV awards they never give the real artist awards @IGGYAZALEA you the bestest," added another fan.

Earlier in the night, Azalea walked the red carpet in a golden, see-through sequin dress by Emilio Pucci.

She later changed into a black, lacy, knee-length number on stage to present the award for Best Hip Hop Video to rapper Macklemore and Ryan Lewis.

Azalea, whose real name is Amethyst Amelia Kelly, was seated next to British singer Rita Ora during the ceremony.

In the lead up to the awards on Monday, Azalea used her social media profile to rally fans on Twitter and Instagram to vote for her in the VMA online voting system.

"Please keep voting!" she wrote an hour before the big announcement.

Earlier, the Aussie confessed to having nerves before the big event.

Asked by a fan how she's feelling on Twitter, Azalea said she was "sleepy and nervous."