Collins hopes the popular Scottish coach will stay on in his second-string role after declining the offer to become Houllier's assistant.
"It would be a huge loss - absolutely massive," said Collins. "Ask any of the boys, they'd say the same, especially since he stepped up when Martin (O'Neill) left.
"He's been great around the place. It's been hard for him as much as it's been for us not knowing what was going on with the manager.
''But I can't speak highly enough of him, he's been superb."
Asked if the players would love the 50-year-old former Liverpool midfielder to stay, Collins added: "Yes, definitely. Any way he could stick around the place would be good for Villa and the boys.
"You know where you are all the time with Kev. I think that's why the boys like him and respect him so much."