In this paper we show that the recently developed nanostructured gradient index (nGRIN) rod microlens can be utilised for the collimation of the beam generated by a vertical-cavity surface-emitting laser (VCSEL). The modelling of the nanostructured lens structure is performed using the finite difference time domain (FDTD) method with realistic nGRIN parameters and a Gaussian model of the light source. The large refractive index gradient of the nanostructured microlens allows the final microlens thickness to be only 70μm with a diameter of 10μm. Successful collimation of a single-mode VCSEL beam with a waist half-width of 1.53μm is presented with a reduction in divergence half-angle from 10.1° to 3.3°. We show that the linear polarisation of the incident beam is preserved as well as presenting the tolerance of this type of lens to variations in overall thickness.