The former Bohemians, Shamrock Rovers and Monaghan United boss has been appointed as manager of the Airtricity First Division side for the 2013 season
The Town had been searching for a new manager since the departure of Mike Kerley in August 2012 and former Carlisle United, Bohemians and Shamrock Rovers manager Roddy will now oversee the club's fortunes for the 2013 season.
Athlone Town chairman John Hayden said that the appointment of Collins was 'a significant statement of intent' from the club.
"We are delighted to appoint Roddy early in the off-season as it allows him time to get to know the club, the region and importantly, time to build a competitive squad," he said.
"It’s a significant statement of intent by Athlone Town to attract a manager of Roddy’s experience and profile."
Collins had been the manager of Premier Division outfit Monaghan United prior to the club's collapse mid-way through the 2012 season.
In recent weeks, the 51-year-old had been heavily linked with the vacant Limerick F.C. post following the sacking of Pat Scully, and had publicly declared his interest in the role, but has now assumed the reins at Lissywollen.