The Dubliner will fight Neville Brown in a four-bout charity bout in Burton-on-Trent on July 6, just two weeks before he turns 50.
Collins, a two-time world champion, became one of boxing's biggest draws in Britain and Ireland in the mid-90s when he twice defeated both Chris Eubank and Nigel Benn.
During his glory days, he also defeat Brown by a TKO in the 11th round in Cork back in 1996, and the two men will now renew hostilities.
Collins' trainer and brother Paschal told the Irish Independent: "There isn't a world title at stake in July but Steve knows he needs to sharpen up before meeting Neville again.
"So, as well as training in London, he'll be putting in work with me in Dublin. He'll be sparring with Gary 'Spike' O'Sullivan and Luke Keeler. We're going to make him work."
Collins retired in 1997 as world champion with a 36-3 record. He won the last 15 fights of his career – the last nine of which were world title fights.
Brown, two years younger than Collins, has not fought since 2000 and is now a boxing and fitness instructor and life coach.
"When the offer of this fight came up, I said, 'Hell, yes,'" he said.
"That title fight I had with Steve in Ireland really made me. I took it as short notice and even though I lost the bout, I earned respect and recognition around the world.
"A couple of charities will benefit from this. I'm hoping it will drum up awareness of men's health. I've been to too many funerals lately, especially among the West Indies community."
- Sports & Recreation
- Chris Eubank