The Portugal Under-21 international, who made a lively contribution as a substitute, arrives from Millwall.
The 21-year-old was on loan at St Johnstone last season and scored once in 16 appearances for the Saints.
"He came very highly recommended by contacts at Chelsea," Collins told the Edinburgh club's website.
"I saw him for myself last season when he was on loan to St Johnstone both before the CIS Cup match and in that game itself.
"He is very strong while comfortable on the ball, I would say he is exactly the type of player we are looking for at Hibernian and we are delighted that he has agreed to join us."