The 29-year-old actor, who plays camp Underworld machinist Sean Tully on the ITV1 soap, claimed that Weatherfield would be more realistic if the programme's chiefs created new homosexual roles.
Speaking to Holy Soap, Cotton explained: "The story goes that one people in ten is gay. We've got 70 people in [Coronation Street] so there should be seven gay characters at least. Especially as Weatherfield is gayest place on the planet as far as female characters are concerned! It's the campest show on TV at times."
He added: "I would like more gay characters on Coronation Street but I don't think Sean would. I think Sean would be very much with [Little Britain's] Daffyd on this one. He likes standing out in the crowd.
"But I think it's great when you've got gay characters on TV. The more there are, the more people are not going to seek representation. You can associate with one type and say, 'That's who I'm similar to and not that person', but it's not a problem because there are two different portrayals."
Cotton, who is openly gay himself, first appeared in Coronation Street in 2003 as part of Todd Grimshaw's (Bruno Langley) ongoing sexuality storyline. He became a full-time castmember in 2004.