A safety needle assembly is described, including a cap, a housing movable relative to the cap from a first position adjacent the cap to an extended second position spaced from the cap, a hollow needle secured in and extending from the housing, and a collapsible sheath secured to both the cap and the housing. The sheath is concentrically disposed about the needle in a collapsed state with the housing in the first position. The sheath is extendable from the collapsed state to an extended state in response to movement of the housing from the first position to the second position.
