Wolves' defeat at Chelsea made it nine losses in 11 games and leaves them firmly rooted at the bottom of the table.
Edwards will now replace Vitor Pereira, joining from Championship side Middlesbrough, and his first game will be after the international break when Crystal Palace come to Molineux.
Collins admits it is a difficult task for the new boss, but he has faith in the characters in the dressing room.
"It's obviously a tough job because the boys are at the bottom of the league," Collins said.
"What I would say to him is that the boys are together, they're working hard, they want to work on the training pitch. There's not little cliques, they're very together.
"That's a good place to start. Yes there is work to do and we have to improve, but there's a lot of games left this season and our season will not be defined by Chelsea away.
James Collins (Photo by Wolverhampton Wanderers FC/Wolves via Getty Images)
James Collins (Photo by Wolverhampton Wanderers FC/Wolves via Getty Images)