The Radio 1 DJ will host the new music series, which is hunting for skilled musicians, regardless of style or whether they are singers, groups, solo acts or instrumentalists. Jamie Cullum, Sharleen Spiteri and Dizzee Rascal were previously confirmed as the judges.
Speaking on her official website about the new show, Cotton said: "We have done our first two days of auditions and its been going really well. I'm blown away by the raw talent that we've seen so far and think the viewers will be too.
"People of all ages and musical inclination and background are on the show, there are no rules or limits as long as they are good and passionate. The judges are having a ball too! They are people who know the business inside out and understand the inner workings of it from a performers point of view which I think is really valuable to the show and integrity of finding someone who can perform at a massive venue and win that big money prize!"
Speaking to the Manchester Evening News about the programme earlier this month, Cotton claimed that the acts would be more talented than the "karaoke" style performers on The X Factor.
"It's people genuinely into music, perhaps those who have already tried to make it, and this is another way to get seen, particularly in front of our amazing panel of judges," she said. "We're looking for someone, who at the end of this process, could perform at Wembley Arena and really wow people.
"The X Factor is about people singing to a backing track, this show is about a person or people performing out there on stage."
Must Be The Music will start on Sky1 in August.