Collins, currently in charge of Tampa Bay Rowdies in the USA, is believed to be on a shortlist which includes former Salford City manager Graham Alexander and ex-Crewe boss David Artell.
First-team coach Mat Sadler, who took charge of the final three League Two matches of the season after Michael Flynn was sacked last month, is also well regarded by the Saddlers’ hierarchy and could yet land the job on a permanent basis.
Co-chairman Ben Boycott is leading the search for Flynn’s permanent replacement and conducted in-person interviews with candidates over the past week.
The American has been determined not to rush the first managerial appointment since last summer’s takeover by his Trivela investment group.
In an open letter to supporters last week, Boycott explained how the new manager would be a “critical component” in helping implement strategic change as the club look to improve on several years of poor performance on the pitch.
Collins made 97 appearances for Wolves and was part of the 2009 Championship winning team before going on to play for Leeds and Sheffield United.
The 39-year-old Scot spent the final two years of his playing career with Tampa Bay, before being promoted to manager of the United Soccer League club in 2018.
