The Northamptonshire vicar and former popstar vicar had an early exit in this year's competition, crashing out after just three dances with partner Dianne Buswell.
However he has maintained a keen interest in the programme and was "gutted" that his church duties stopped him from participating in the programme's live tour.
Speaking about why he made the bet, he said: "I've always thought Alexandra (Burke) should be favourite but I've put money on Joe.
"I love Joe, he's a lovely guy and he's just brilliant. He gets better and better... I actually put 50 quid on Joe but I can't remember the odds."
McFadden has been labelled a dark horse of the competition by head judge Shirley Ballas and topped the leader board two weeks ago.
Rev Coles added he would also like to see Debbie McGee win as to have an older woman win it would be "terrific".
The Parish Priest of St Mary's Church, Finedon, Northamptonshire, is the only vicar in Britain to have had a number one hit single with pop band The Communards in the 1980s.
He has recently released a Christmas album full of his favourite festive tunes.
Explaining why he decided to release the album, he said: "I wanted to put together a Christmas album that went back to the stable in Bethlehem and the source of it all.
"It kind of gets lost sometimes."
