Lennon, 41, guided his charges to a 3-0 victory over Hibernian at Hampden Park on Sunday as the Bhoys added the Scottish Cup trophy to the already-secured Scottish Premier League crown.
The Hoops chief, who also masterminded a win over Spanish giants Barcelona in this term's Champions League, has been linked with some of the managerial vacancies in England, but ex-Celtic star Collins reckons the Ulsterman will stay put - for now.
"The Celtic board will want to keep Neil after he led them to the double and that wonderful European run, but there is talk of him going and I'm sure the big boys will be looking at him," the former midfielder told Sky Sports.
"There is big money down south but I think he will stay for another year because he is winning trophies, enjoying himself and having those special European nights - which he won't get at the likes of Everton or Stoke."
Celtic hotshot Gary Hooper opened the scoring against Hibernian after just eight minutes - the erstwhile Scunthorpe man volleying home strike partner Anthony Stokes' far-post cross - before striking again just after the half-hour mark.
But Collins, who led the Hibees to the Scottish League Cup title in 2007, says the encounter was effectively over as soon as the 25-year-old Englishman had first rippled the net.
"You always felt that if Celtic got their noses in front that would be it and when they did score you never thought Hibs were going to come back at them," said the one-time Monaco player.
"Hibs' back four could not cope with the movement of Hooper and Stokes; they showed plenty of commitment and effort but they didn't have enough quality and Celtic had too much."
Sky Sports pundit Neil McCann, meanwhile, was left unimpressed by Hibernian's defensive game-plan as Pat Fenlon's men lost the Scottish Cup Final for the second successive year, following the 5-1 reverse to Edinburgh rivals Hearts in May 2012.
"When Hibs went 2-0 down Fenlon seemed to drop [Eoin] Doyle into a wide right position and adopt a 4-5-1 system and that total isolated [Leigh] Griffiths, who was then unable to cause chaos and had to try and get onto long balls," said McCann.
"I felt - and I'll apologise if I'm wrong - that after they were thumped by Hearts last year they wanted to limit the damage and make sure they didn't get another tonking."