Collado is an academy product of the Catalan giants but has faced issues in getting regular first-team football while at the Camp Nou.
After failing to secure a move away last summer, administrative problems meant he only played for the first time in the past season in January, when he went on loan to Granada.
Celtic were interested in taking on the midfielder this summer but they had Spanish side Elche to contend with, and they were Collado’s preference.
It was reported that Elche had won out in the race for the 23 year-old and Celtic were set to miss out on his signing.
The reports have now seen confirmation as Collado has joined Elche for the length of this season and Celtic have been deprived of a midfield reinforcement.
Collado played 17 times for Granada last season in La Liga, scoring two goals, but could not prevent the team from being relegated and he will be hoping for a more positive time with Elche.
For Celtic, meanwhile, after missing out on Collado, it remains to be seen if they add another midfielder before the window shuts down.
