The Salford-born tenor will join the show for two nights only at the Manchester Arena on May 9 and 10, headlining the finale song 'Ghosts - Take My Hand'.
Written by Street of Dreams composer Trisha Ward, 'Ghosts - Take My Hand' celebrates the most iconic characters from Coronation Street's history.
Watson commented: "It's an incredible privilege to be asked to be a part of something so amazing and unique. Coronation Street was a prominent fixture in the Watson household whilst I was growing up, so any opportunity to combine such an iconic brand with exquisite music is one I'd never hesitate in taking on.
"I'm so looking forward to coming home and joining old friends on stage - I doubt there'll be a dry eye in the house!"
He added: "I'm going to use this as my chance to get a little cameo appearance in the show too - it'll be my audition! I think I'd make a great love-child of Mike Baldwin!"
Meanwhile, Trisha Ward said: "I am thrilled and delighted Russell Watson is joining the cast for the world premiere of Coronation Street - Street of Dreams to lead my finale song, 'Ghosts - Take My Hand'.
"Russell has a voice of extraordinary quality and is a world-class artist. Coming from Manchester himself, he is also the perfect guest star to join us for this - our first ever performance of the show."
Today's announcement follows previous confirmation that Kym Marsh, Jodie Prenger, Julie Goodyear, Kevin Kennedy and Brian Capron had all signed up for the Manchester premiere.
The production sees Paul O'Grady guide the audience through the biggest storylines from Coronation Street's past with the help of his 'Angel of the North' Julie Carp, played by Katy Cavanagh.
Following its premiere in Manchester, Street of Dreams will tour to Dublin, Belfast and Newcastle.
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