The twisted character, played by 32-year-old Kate Ford, will tell police that Gail (Helen Worth) caused the death of husband Joe by battering him with a rolling pin before hiding the 'weapon', according to The Sun.
It is thought that jailed Tracy comes up with the lie after Gail tells her that she hid a rolling pin on top of a bedroom wardrobe in order to stop poor cook Joe from baking potato pie.
In later scenes, police are expected to find the kitchen instrument exactly where Gail left it at the lakeside holiday cottage she shared with Joe before his death - making Tracy's tale appear true and the case against Gail grow stronger.
A Weatherfield source said: "Gail is terrified. She has to find a way to prove Tracy is lying."
As previously revealed, Tracy ends up sharing a prison cell with Gail after police enlist her to extract a confession from her former neighbour in return for an early release.
Despite detectives' suspicions, Joe's passing was an accident which took place after he made a bungled attempt to fake his own death while on his Lake District trip with Gail.