The LHC collimation system, ensuring both functions of beam cleaning and machine protection, is potentially submitted to high-energy beam impacts. Currently the collimators setup is performed by monitoring beam losses generated by the collimator jaws when approaching the particle beam. This procedure is applied to all LHC collimators (almost one hundred), taking several hours, and needs to be repeated if beam settings change significantly. Furthermore, during the beam-based alignment, the LHC tertiary collimators are potentially exposed to abnormal losses entailing possible damage to their tungsten jaws. To improve the efficiency of the machine operation and better control the particle beam a new advanced design embedding Beam Position Monitors (BPM) into the movable collimator jaws has been developed. This paper describes the mechanical design of various types of future collimators with embedded BPMs. Experimental measurements performed on a simplified functional prototype installed in the CERN SPS showed that, thanks to on-board BPMs, the collimator could be precisely, rapidly, and safely aligned and the beam position accurately measured. Presented at: IPAC11, San Sebastian, Spain, 4-9 September 2011