The former Bohemians, Carlisle United and Athlone Town manager is currently out of contract having won the First Division last season but is interested in the Candystripes job
The Candystripes are currently without a manager having parted ways with Declan Devine by mutual consent at the end of the season.
Collins, who recently steered Athlone Town to promotion by winning the First Division, is currently a free-agent and said that he would be interested in succeeding Devine at the Brandywell, suggesting that the club has the potential to win the league.
"Anyone that has half a football brain would realise the potential of Derry City," he told BBC Radio Foyle. "There's no doubt about that. A fantastic club, a big club, [with] great support.
"[There is] a great young squad of players, not much needed to sort it out. In my opinion [Derry City] have the potential to win the league, if not next year, the year after without a shadow of a doubt.
"I would like to do that. I spoke to a couple of the lads on Sunday and I'm just waiting for a call to have a spin up to Derry to have another chat."
Derry City chief executive Sean Barrett revealed that the club had received applications from "far and wide."
"There was one from Africa, some from the UK and of course the locally-based managers as well," he told the BBC.
"We'll be making sure we get the best possible manager to manage Derry City Football Club."