The 19-year-old is part of Villa's reserve side and has also been selected for international duty with the Republic of Ireland's Under-21 squad.
Collins enjoyed a three-month loan spell with Darlington last term where he scored twice in eight appearances for the then-League Two club.
Manager Paul Peschisolido told Albion's official website: "I've been to watch James on quite a few occasions this season. He's a big lad and he's got a great attitude. If we get the ball in the box I think he'll get on the end of things.
"Everyone at Aston Villa speaks very highly of the boy. He's got that hunger to succeed and that goes a long way. He's still a young lad and it'll take him time to settle though."