The acclaimed actor, who plays ex-gigolo Lewis Archer on the ITV soap, was rumoured to be departing Weatherfield after he signed up for a pantomime.
A subsequent report in June claimed that Lewis would be killed off in a road accident, but Corrie producer Phil Collinson has since ruled out such a storyline in an interview with Digital Spy earlier this month.
A source told The Mirror: "Reports of Lewis being killed off were grossly exaggerated.
"The bosses love the way Nigel portrays suave Lewis - and so do the viewers, so it's great that he is going to be with us well into 2013.
"There will be some fantastic storylines lined up for him as well to get everyone hooked on his romantic capers once more. At the end of the day the bosses love the way Nigel plays Lewis."
Regarding future storylines, the insider teased: "His character is perfect material to string out flattering relationships with the more elderly residents in Weatherfield.
"Everyone knows he has form for charming Audrey (Sue Nicholls) and Rita (Barbara Knox) and also Deirdre Barlow (Anne Kirkbride) so word is he could easily have other lovely ladies in his new year sights."
Lewis Archer rekindled his romance with Audrey when he returned to the cobbles in February. His first stint during 2010 saw the character con Audrey, Deirdre and bookmaker Peter Barlow.