Queenstown born centre Collins, who also plays at fullback, is second-generation Welsh descent to a grandfather who hails from Llanelli.
The 22-year-old has this week arrived in Wales looking forward to linking up with his new teammates at the Scarlets after Otago bowed out of the ITM Cup Championship semi-finals with a defeat to Wellington.
Collins was highly commended for his counter-attacking play in the semi-final defeat and had scored a brace of tries in Otago’s victory over Northland ten days earlier.
The former captain of Otago Boys’ High School 1st XV and 1st XI, and former New Zealand Schools representative, was the first player to be signed to premiership level straight from school. He represented New Zealand Under 20s on five occasions in 2013.
He joins a Scarlets side in red-hot form, fresh from toppling Munster 25-22. Their fifth win five matches this season sees them top the Pro12 with 20 points, level with Connacht, who overcame the Ospreys 21-16 on Saturday.
He has been drafted in as cover for Scott and Liam Williams after bruising Rugby World Cup campaigns, and could feature in the regional derby against the Newport Gwent Dragons on Friday evening.
Scarlets head coach Wayne Pivac said: “Michael is a versatile player with a good skill-set who has played in the midfield and fullback for Otago in the ITM Cup.
“He has been brought in to cover injuries to Scott and Liam and we’re looking forward to welcoming him to West Wales and to the Scarlets.”