Although Britain enjoyed its best Olympics for 100 years with 47 medals and fourth place in the standings, the team won just four athletics medals - one fewer than it had targeted.
Charles van Commenee, who led the Netherlands to its second most successful Olympics in Beijing with an overall seven gold medals, is expected to succeed Collins.
Van Commenee is known in Britain for telling heptathlete Kelly Sotherton that she "ran like a weasel" in the competition's final event in the 2004 Athens Games, where he was UK Athletics multi-events director. Sotherton cried at being told by Van Commenee that she could have won silver instead of bronze had she tried harder, but later said he was correct.
Van Commenee's task is to raise performances in time for the 2012 London Olympics.
"Our planning for this next Olympic cycle got under way several months ago and this decision and any subsequent appointment is the culmination of this detailed process," UK Athletics chief executive Niels de Vos said.
"We now need to take the next step on the performance ladder and give ourselves and British athletes the very best chance of success at a home games."
Van Commenee was in contention to replace Max Jones as UK Athletics performance director four years ago, but opted to work in his native Netherlands after becoming frustrated by the lengthy interview procedure.
Collins took the post instead.
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