Collins hade made almost 100 appearances for Wolves since joining the club in 2006.
“Neill will move on, just like Jason Shackell and Darren Ward,” said McCarthy in the Express & Star. “I want to sell him – Neill doesn’t want to be going out on loan.
“He’s been brilliant for us, but he needs to go and play football.
“There’s nothing in the offing for him to my knowledge, but he’d get into any Championship side. Half of them would make him their captain if he went there.
“I said the same about Rob Edwards and I wasn’t wrong – he went to Blackpool and became their captain. Neill will do the same.
“He has been excellent, but hasn’t been in the team and you just need to change things from time to time.”