Producers are casting two actresses to play Lloyd's daughter and the ex-girlfriend with whom he accidentally conceived the child, The Sun reports.
"Lloyd hasn't been in touch with this woman for a while and then she waltzes in and announces that he has a daughter," a source claimed.
"The news will knock Lloyd for six. His reaction will be pretty explosive," the insider added.
Both new characters will allegedly arrive on TV screens in September, sparking a new plot for Craig Charles's alter ego.
Charles may have teased the daughter twist on last Friday's (July 6) This Morning when he said: "There's going to be something really iconic for Coronation Street happening to Lloyd. So I'll leave that as a little teaser!"
Hapless Lloyd's returning scenes saw him cross wires with old friend Steve McDonald (Simon Gregson), culminating in a brawl at a school sports day.
Charles rejoined the Corrie cast last month after taking an extended break to film a new series of classic sci-fi comedy Red Dwarf.
The Liverpudlian recently signed a three-year contract extension which will see the star stay with the ITV serial until 2015.
> Craig Charles: 'I'm surprised I missed Coronation Street
> Coronation Street Craig Charles wants Lloyd, Steve to live together