Lucy, 22, plays teenager Bethany Platt in the soap, with 35-year-old Tina playing her on-screen mum, Sarah.
Lucy impressed fans and critics alike with her performance as sexual abuse victim Bethany – picking up a string of awards off the back of the hard-hitting story, including Best Actress at the British Soap Awards.
Now she and Tina have signed up for another year on the show.
Speaking to the MailOnline, a source explained: "Lucy has been a great addition to the cast and her performances have been amazing.
"She's been a massive hit with the audience since she joined and has picked up some major accolades for her acting skills throughout the Bethany storylines.
"Her performances have been top drawer and a new deal is well-deserved.
"Tina's return has also been well-received and the mother and daughter work well together.
"The executives are also well-aware that they need some glamour in the show and want to guard against people deciding to leave at the same time when their contracts are up so they were both offered new deals at the earliest opportunity."
Lucy joined the ITV soap in 2015, with Tina making her return at the same time.
Lucy's biggest storyline to date saw her manipulated and assaulted by groomer Nathan Curtis and his gang.
He originally came across as an encouraging and likeable character, but that soon faded as viewers discovered he was part of a grooming ring.
After encouraging Bethany to start posting make-up tutorials online, Nathan started a relationship with the vulnerable teen, which led to her being raped repeatedly by various men.
After enduring months of abuse at the hands of her twisted boyfriend Nathan and his sick friends, Bethany finally managed to escape their clutches.
The troubled character bravely testified against Nathan and two of his accomplices in court and all three men were sent to prison.
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