Mr Corbyn said a general election was the most “practical” and “democratic” way to “break the deadlock” in Parliament over Brexit as Theresa May’s bill faces defeat from MPs on both sides of the chamber.
The Labour leader, speaking at OE Electrics in the city, argued that a government with a new mandate could negotiate a better withdrawal deal.
He said: “Let there be no doubt – Theresa May’s deal is a bad deal and Labour will vote against it next week in parliament.
"If the government cannot pass its most important legislation then there must be a general election at the earliest opportunity.
"A government that cannot get its business through the House of Commons is no government at all.
"It has lost its mandate so must go to the country to seek another.
“So I say to Theresa May – if you are so confident in your deal, call that election, and let the people decide.
"If not, Labour will table a motion of no confidence in the government at the moment we judge it to have the best chance of success.
"And if a general election cannot be secured then we will keep all options on the table, including the option of campaigning for a public vote.
"But an election must be the priority. It is not only the most practical option, it is also the most democratic option.
"It could give the winning party a renewed mandate to negotiate a better deal for Britain and secure support for it in Parliament and across the country."
Mr Corbyn has faced calls from Labour members to come out in favour of a second Brexit referendum.
The party stands to lose millions of votes if it does not take a stronger line against leaving the EU, according to campaign group Another Europe is Possible.
Mr Corbyn has said that Labour’s position is to force a general election.
However he has previously said insisted that all options remain on the table