Collins, 32, was the former manager at SkyBet League One Bradford City in September, where he took charge after his role as the under-18s lead coach; his first-team role at Bradford named him as the youngest manager in the Football League.
As a player, Collins has featured for Huddersfield Town, Scunthorpe United, Oxford United, Leyton Orient and his most recent club being FC Halifax Town.
Collins signed for the Shaymen in December 2017 on a deal until the end of the season. He had last played for Leyton Orient in 2016/17 and announced his retirement after leaving the O’s at the end of the season when they were relegated out of the Football League.
However, the midfielder was goaded out of retirement by an offer from his home-town club, signing a contract at Halifax until the end of the 2017/18 season and was named amongst the starters on his first game.
Alfreton boss Billy Heath told the club`s press officer Amar Sharma: “We tried to get Michael in the summer before he opted to take on the opportunity at Bradford City, I’ve worked with him before and he provides us with massive experience, it’s a top signing for us.
“He is a good midfielder and he had a break away from Halifax to get into management, but he has always been a fit player, so it might take him a few games to get to top level but Michael joining us really adds to our squad in both quality and experience. We are delighted to have him”.