The New Zealand international striker Wood helped fire Forest to Europa Conference League qualification last season, scoring 20 goals in 36 Premier League appearances.
Wood will turn 34 next season and Collymore is convinced the Kiwi can still make a major impact over the coming 12 months.
He told Tribalfootball.com: "It's going to be difficult, I mean you look at his cv - Leeds, Newcastle and you talk to fans of those clubs and they say 'crikey didn't see this coming', but I think that the beauty of what Forest have given him is wide men that put crosses in the box so many times...
"(Anthony) Elanga has gone past the fullback put a cross into the box (Callum) Hudson-Odoi the same, (Morgan) Gibbs-White looks to play a little pass behind and he's, of course, is that most British type of centre forward.
"The two best in the Premier League are Chris Wood, who's a Kiwi, and Erling Haaland, who's Norwegian, and I like the fact that we seem to have this sort of re-emergence of a physical centre forward, because you see that when they're used and utilised at their very best, they can still be very, very effective.
"Central defenders now tend to be a little bit smaller, but more mobile. And so if you put crosses into the box for somebody who's 6ft3, 6ft4, 6ft5, you're going to create a lot of damage. So I'm delighted for Chris. I think he can go on and have another good season, whether it's another 20-goal season. Who knows? Because Nottingham Forest are now a known quantity."
Lacking surprise factor
Collymore continued: "Every team that they play and every team that they go against, people are going to know that they're particularly good on the counter-attack. And they're not particularly good when they have lots of the ball. So it'll be interesting to see when the teams go to the City Ground and just sit off.
"But I think that they can be in the conversation for Europe again next season. I think that the Conference League is something that any English club could or should be aiming to win.
"I was disappointed from an Aston Villa perspective that we didn't win it two years ago. We got knocked out in the semifinals by Olympiacos. So if Forest next season are in the top seven or eight, don't forget that because of the English coefficient in UEFA tournaments, we may still get to that nine or 10 or 11 teams from the Premier League in Europe next season. So I think that Forest can go on and have another successful season."
- Stan Collymore was speaking to Tribalfootball.com on behalf of NewBettingSites.uk