Following Collin's arrival at the Brandywell in mid November of last year, The Candystripes have won just two of their opening twelve matches in the SSE Airtricity Premier Division and are twelve points of the leaders St Pats.
Peter Hutton will take over as caretaker boss with the club's board set to meet later in the week.
Other names like that of Paul Hegarty, Kenny Shiels and Sean Connor will invariably be linked with the Brandywell hot-seat.
Collins' last game in charge was the 1-0 home defeat by Shamrock Rovers.
The results and indeed team selections have been a subject of some criticism and he was booed off at the Brandywell last Friday.
According to the Derry News, Derry City chairman Philip O'Doherty said the club had to make a decision based on poor results and falling gates. City are in action in Europe in July and need to turn things around.
The club will hold a board meeting tomorrow night.