The actor, who played Frank Foster in the ITV1 soap, faces five counts of indecent assault on a child under 16.
Lancel was bailed by Merseyside police after being charged yesterday under his real name Andrew Watkinson.
He will appear in court later this month over the alleged crimes, which date back to the 42-year-old's early career.
Lancel's solicitor Stuart Nolan told The Sun that the actor "strenuously denies the allegations".
"Mr Lancel was invited by police to co-operate with an inquiry by one complainant about events that allegedly took place over 20 years ago," he said.
"He is confident his innocence will be established in the fullness of time."
Last night, Lancel posted a thank you message on Twitter, saying: "My lovely followers and friends. Your support means the world. Have faith Good night See you soon x. (sic)"
A police spokesman told the Daily Mail: "Merseyside Police can confirm that a 42-year-old man has been charged with five offences of indecent assault on a child under 16 under the Sexual Offences Act 2003.
"The offences are historic. He has been bailed to appear at South Sefton Magistrates' Court on Wednesday 19 December."
Earlier this year, Lancel's 16-month stint on Coronation Street came to an end when his character Frank was found murdered.
He joined the show in November 2010 as a business partner of Carla Connor and was involved in a number of dramatic storylines around his relationship with the factory owner.
In March this year, Frank was found dead in the factory, sparking a whodunit mystery that saw Carla, Sally Webster, Peter Barlow and Michelle Connor under suspicion. However, it was later revealed his mother Anne Foster was the murderer.
Lancel, who is currently starring in the play Epstein: The Man Who Made The Beatles in Liverpool, is also known for his roles in The Bill, Queer As Folk and Cardiac Arrest.