The former EastEnders actress, who plays Rovers Return manager Stella Price on the ITV1 soap, is said to have impressed producers with her stint on the cobbles and her character will be involved in a key storyline in the New Year.
Her on-screen family - partner Karl Munro (John Michie) and daughter Eva Price (Catherine Tyldesley) - are also said to be staying on the show, with an insider telling The Mirror that the actors are to be rewarded with new deals as "the viewers took to them".
"I am enjoying myself much more these days," Collins is quoted as saying. "It was a tough role to step into - like going into the royal family!"
A Coronation Street spokesperson confirmed the news, adding: "Everyone is really pleased."