The actor - who plays Lloyd Mullaney in the ITV soap - has been away for several months since his character decided to leave Weatherfield in November.
Charles had originally planned to be away for just three months in order to film the latest series of Red Dwarf, and there were reportedly concerns that he may not be making a return.
"There were all kinds of rumours flying around that Craig wasn't coming back at all," a source told The Mirror.
"But it seems he is back with a bang. Craig is well liked by the production crew and has some great banter with them, so he has been missed.
"It's a relief and joy that he is back."
Lloyd Mullaney is said to return for a "terrific" comeback that sees him launching a new cab firm to rival Steve McDonald's business.
Charles said last year that he was grateful for showbosses allowing him to leave to film Red Dwarf.
New episodes of the sci-fi comedy - starring Charles, Chris Barrie, Robert Llewellyn and Danny John-Jules - will air on Dave later this year.