The 65-year-old former Genesis frontman will play five nights at London’s Royal Albert Hall next summer as well as dates in Cologne and Paris.
The In The Air Tonight and Another Day In Paradise star officially retired in 2002.
But Collins, who has previously spoken about his battle with the bottle following a divorce fight with his third wife - with whom he later got back together - told a press conference that retirement was “a funny word”.
He said: “I stopped work because I wanted to be a dad at home. As bad luck would have it, as soon as I retired, my family split up.
“I didn’t have anyone to go home to. That’s why I started drinking.”
But the drummer and singer said of his retirement: “I’ve changed my mind.
“I’m living with my young kids. They want me to go out on the road and do my thing, and why not?”
He said he was not nervous and was looking forward to the tour.
Collins, who has been using a crutch because of injuries caused by years of drumming, said he was unlikely to play drums - although he would like to attempt the famous introduction to In The Air Tonight.
He said: “A lot of people think of me as shiny BMW music. I’m actually the complete opposite of that.”