Collins, who began his career at Wolves, died at the age of just 32, with current club Yeovil announcing the tragic news this week.
No details on the circumstances of his death have been revealed.
Before Town's clash with Northampton, both sets of players lined up around the centre circle, with coaching staff from both sides also standing to remember the defender - who made 86 appearances for Town's opponents.
The former Shrews loanee also counted Port Vale, Barnsley, Mansfield and Forest Green as former clubs, with his spell in Shropshire consisting of eight games in 2012.
Yeovil's National League fixture with Altrincham, due to take place on Good Friday, was postponed following the news.
Scarves, flags, shirts and flowers have been left outside Yeovil's Huish Park stadium in tribute to Collins.
A club statement read: "All at Yeovil Town Football Club are mourning the loss of club captain Lee Collins.
"Lee sadly passed away yesterday and our thoughts and prayers go out to his family and friends.
"We ask everyone to respect the family's privacy at this time."
Shrewsbury Town also issued their own statement, expressing their sadness at the news.
"Shrewsbury Town is devastated to hear about the passing of former Town player, Lee Collins. Everyone at Shrewsbury Town sends our condolences to everyone at Yeovil Town as well as Lee's family and friends. Rest in peace," it said.