The 80-year-old Lovejoy star will play the ageing father of another new cast member, former Hollyoaks actor James Redmond, with the pair making their debuts next month.
Sutton said: "This will be my second appearance in Emmerdale as I appeared in 1997 as a tramp! It's great to be back in Yorkshire and I have fond memories of filming the Beiderbecke trilogy in the same building as Emmerdale is now filmed."
His character, William, appears when Ruby Haswell, played by Alicya Eyo, applies to work as his carer but does not realise he is the father of her former boyfriend Seb.
Redmond said: "Having taken a five-year break from acting to concentrate on stand up comedy, I am really looking forward to getting back on the horse. It will be great to join the cast of Emmerdale and Seb will be my first time playing a northerner."