His comments triggered an immediate backlash from Labour MPs who are pushing for a vote on Theresa May's Brexit deal.
The Sunday Telegraph says Corbyn's comments "pave the way for a significant change in Labour's Brexit policy", and come just two days after Theresa May urged the Labour leader to clarify his position on Brexit, "amid concern that a Labour U-turn could jeopardise any deal reached with Brussels and prevent the United Kingdom from leaving the EU".
According to the Associated Press, the shadow chancellor said that "we argued for "remain" in the past but we lost that vote so we have to respect that".
"We think the real people's vote would be a general election".
Labour's conference will vote later on Tuesday on keeping a second Brexit referendum as an option if May fails to get her Brexit plan through parliament, heaping pressure on the struggling prime minister.
Mr Corbyn said that he would allow a "clear vote" during party conference over the question of whether the Labour Party would formally back a people's vote and that he would be "bound" by their decision.
Mr Corbyn has been reluctant to support a second referendum, but said on Sunday he would abide by the decision taken by activists at the party conference today.
The Labour leader said that winning an election is "not going to be easy" but hailed the power of "popular movements coming together".More news: Sky falls in on Comcast share price
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Labour deputy leader Tom Watson last night revealed he is now firmly backing "a People's Vote".
"I tell you what: they are on borrowed time because a Labour government is coming".
In a speech to the party's conference today the shadow Brexit secretary, Sir Keir Starmer, will say that it is "increasingly likely" that Labour will oppose whatever deal emerges from Brussels.
Mr Starmer is expected to say: "Just when we need a strong government, what do we see from the Tories?"
Still, Labour faces a major political dilemma.
Since the 2016 referendum, Labour has stuck to a policy of "constructive ambiguity" in a bid to appeal to both "leave" and "remain" voters.
"This is as big a crisis as I can remember in my lifetime", Adonis said. Mr Corbyn confirmed there will be a vote on the party's Brexit stance during the four-day conference.
Labour MP Clive Lewis also urged Mr Umunna to get behind the party leadership. "It will make the 2016 referendum look like a walk in the park". "Jeremy Corbyn is a Brexiteer and always has been", said Chilton of Labour Leave.
The campaign said it was unacceptable that the prospect of remaining in the European Union (EU) would not be on the table in the so-called "people's vote" outlined by the shadow chancellor on Sunday evening, in press releases published to Twitter.