The 26-year-old defender will not be allowed to play professional football ever again after being found guilty of fixing a friendly two years ago
An announcement on Tuesday confirmed the decision on Collado's future, after he was found to be guilty of match-fixing charges.
Collado was accused of fixing a national friendly between Nicaragua and Guatemala in 2010, and was later linked to a Singapore-based gang who bribed national players during the Concacaf Champions League, but international action has only just been taken relating to the offence.
The 26-year-old was previously banned by the Nicaraguan Football Federation in relation to the friendly match between Nicaragua and Guatemala on September 4 2012. However, match-fixing was not the initial reason given for the suspension, as Collado was sidelined for acts against sport and honour of the country.
Guatemala defeated Nicaragua 5-0 during the fixture which raised suspicions over potential match-fixing. Those doubts were later justified when a newspaper, based in Collado's home nation of El Salvador, accused the player of encouraging his own players to affect the result.
Last month, Guatemalan national team players Guillermo Ramirez, Gustavo Cabrera and Yony Flores were also arrested on similar charges.