We investigate theoretically the effects of vacuum-induced coherence (VIC) on magneto-optical rotation (MOR). We carry out a model study to show that VIC in the presence of a control laser and a magnetic field can lead to large enhancement in the rotation of the plane of polarization of a linearly polarized weak laser with vanishing circular dichroism. This effect can be realized in cold molecular gases and may be used as a sensitive probe for VIC. Such a large MOR angle can also be used to detect weak magnetic field with large measurement sensitivity.