Collins joined Aston Villa from West Ham in a £5million deal earlier this week.
Toshack said: “Collins is a future Wales captain. I still feel there are some things in his game that he can improve on.
“But he has missed too many games for us. He has been out for long spells on more than one occasion.
“He also missed a lot of games for West Ham over the years. But he has gone to a big club at Aston Villa, Martin O’Neill has shown confidence in him and paid good money.
“So hopefully we will now benefit from his move. And it might well open the door for Danny Gabbidon at West Ham to play a lot more matches after his bad injury problems.”