diff --git a/packages/cli/src/lib/new/collection/collectPortableTemplateParams.ts b/packages/cli/src/lib/new/collection/collectPortableTemplateParams.ts
deleted file mode 100644
index 1048ad39f2..0000000000
--- a/packages/cli/src/lib/new/collection/collectPortableTemplateParams.ts
+++ /dev/null
@@ -1,66 +0,0 @@
-/*
- * Copyright 2025 The Backstage Authors
- *
- * Licensed under the Apache License, Version 2.0 (the "License");
- * you may not use this file except in compliance with the License.
- * You may obtain a copy of the License at
- *
- *     http://www.apache.org/licenses/LICENSE-2.0
- *
- * Unless required by applicable law or agreed to in writing, software
- * distributed under the License is distributed on an "AS IS" BASIS,
- * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
- * See the License for the specific language governing permissions and
- * limitations under the License.
- */
-
-import inquirer from 'inquirer';
-import { getCodeownersFilePath } from '../../codeowners';
-import { paths } from '../../paths';
-import { PortableTemplateConfig } from '../types';
-import { customPrompt, getPromptsForRole, ownerPrompt } from './prompts';
-import { PortableTemplate } from '../types';
-
-type CollectTemplateParamsOptions = {
-  config: PortableTemplateConfig;
-  template: PortableTemplate;
-  prefilledParams: Record<string, string | number | boolean>;
-};
-
-export async function collectPortableTemplateParams(
-  options: CollectTemplateParamsOptions,
-): Promise<Record<string, string | number | boolean>> {
-  const { config, template, prefilledParams } = options;
-
-  const codeOwnersFilePath = await getCodeownersFilePath(paths.targetRoot);
-
-  const prompts = getPromptsForRole(template.role);
-
-  if (codeOwnersFilePath) {
-    prompts.push(ownerPrompt());
-  }
-  if (template.prompts) {
-    prompts.push(...template.prompts.map(customPrompt));
-  }
-
-  const needsAnswer = [];
-  const prefilledAnswers = {} as Record<string, string | number | boolean>;
-  for (const prompt of prompts) {
-    if (prompt.name && prefilledParams[prompt.name] !== undefined) {
-      prefilledAnswers[prompt.name] = prefilledParams[prompt.name];
-    } else {
-      needsAnswer.push(prompt);
-    }
-  }
-
-  const promptAnswers = await inquirer.prompt<
-    Record<string, string | number | boolean>
-  >(needsAnswer);
-
-  return {
-    ...config.globals,
-    ...prefilledAnswers,
-    ...promptAnswers,
-    targetPath: template.targetPath,
-  };
-}
diff --git a/packages/cli/src/lib/new/createNewPackage.ts b/packages/cli/src/lib/new/createNewPackage.ts
index 200ee475b0..9a4ea6a6e3 100644
--- a/packages/cli/src/lib/new/createNewPackage.ts
+++ b/packages/cli/src/lib/new/createNewPackage.ts
@@ -14,7 +14,7 @@
  * limitations under the License.
  */
 
-import { collectPortableTemplateParams } from './collection/collectPortableTemplateParams';
+import { collectPortableTemplateParams } from './preparation/collectPortableTemplateParams';
 import { loadPortableTemplateConfig } from './preparation/loadPortableTemplateConfig';
 import { executePortableTemplate } from './execution/executePortableTemplate';
 import { selectTemplateInteractively } from './preparation/selectTemplateInteractively';
diff --git a/packages/cli/src/lib/new/collection/collectPortableTemplateParams.test.ts b/packages/cli/src/lib/new/preparation/collectPortableTemplateParams.test.ts
similarity index 100%
rename from packages/cli/src/lib/new/collection/collectPortableTemplateParams.test.ts
rename to packages/cli/src/lib/new/preparation/collectPortableTemplateParams.test.ts
diff --git a/packages/cli/src/lib/new/collection/prompts.ts b/packages/cli/src/lib/new/preparation/collectPortableTemplateParams.ts
similarity index 71%
rename from packages/cli/src/lib/new/collection/prompts.ts
rename to packages/cli/src/lib/new/preparation/collectPortableTemplateParams.ts
index 12c9965ea4..865266f8ec 100644
--- a/packages/cli/src/lib/new/collection/prompts.ts
+++ b/packages/cli/src/lib/new/preparation/collectPortableTemplateParams.ts
@@ -1,5 +1,5 @@
 /*
- * Copyright 2021 The Backstage Authors
+ * Copyright 2025 The Backstage Authors
  *
  * Licensed under the Apache License, Version 2.0 (the "License");
  * you may not use this file except in compliance with the License.
@@ -14,9 +14,59 @@
  * limitations under the License.
  */
 
-import { DistinctQuestion } from 'inquirer';
-import { PortableTemplatePrompt, PortableTemplateRole } from '../types';
-import { parseOwnerIds } from '../../codeowners';
+import inquirer, { DistinctQuestion } from 'inquirer';
+import { getCodeownersFilePath, parseOwnerIds } from '../../codeowners';
+import { paths } from '../../paths';
+import {
+  PortableTemplateConfig,
+  PortableTemplatePrompt,
+  PortableTemplateRole,
+} from '../types';
+import { PortableTemplate } from '../types';
+
+type CollectTemplateParamsOptions = {
+  config: PortableTemplateConfig;
+  template: PortableTemplate;
+  prefilledParams: Record<string, string | number | boolean>;
+};
+
+export async function collectPortableTemplateParams(
+  options: CollectTemplateParamsOptions,
+): Promise<Record<string, string | number | boolean>> {
+  const { config, template, prefilledParams } = options;
+
+  const codeOwnersFilePath = await getCodeownersFilePath(paths.targetRoot);
+
+  const prompts = getPromptsForRole(template.role);
+
+  if (codeOwnersFilePath) {
+    prompts.push(ownerPrompt());
+  }
+  if (template.prompts) {
+    prompts.push(...template.prompts.map(customPrompt));
+  }
+
+  const needsAnswer = [];
+  const prefilledAnswers = {} as Record<string, string | number | boolean>;
+  for (const prompt of prompts) {
+    if (prompt.name && prefilledParams[prompt.name] !== undefined) {
+      prefilledAnswers[prompt.name] = prefilledParams[prompt.name];
+    } else {
+      needsAnswer.push(prompt);
+    }
+  }
+
+  const promptAnswers = await inquirer.prompt<
+    Record<string, string | number | boolean>
+  >(needsAnswer);
+
+  return {
+    ...config.globals,
+    ...prefilledAnswers,
+    ...promptAnswers,
+    targetPath: template.targetPath,
+  };
+}
 
 export function namePrompt(): DistinctQuestion {
   return {