The former Genesis star told The Mirror that a spinal injury causes too much pain for him to even hold his drumsticks.
Collins said: "I've got a condition that means I can't play anymore. After playing drums for 50 years, I've had to stop.
"Obviously I'm very sad about it. My vertebrae has been crushing my spinal cord because of the position I drum in."
He added: "It comes from years of playing. I can't even hold the sticks properly without it being painful. I even used to tape the sticks to my hands to get through.
"But don't worry, I can still sing."
Collins joined Genesis as the band's drummer in 1970 before moving to vocals following Peter Gabriel's departure in 1975.
He later had a successful solo career with hits including 'In The Air Tonight' and 'Another Day in Paradise'.