Writing in a column for 'ESPNCricinfo', Chappell argued for Kohli's elevation as soon as possible after India's shambolic recent tour of New Zealand in which the team failed to register a single win in any format.
"Dhoni is a brilliant captain in the shorter versions of the game, and a master at timing his run to the finishing line as a middle-order batsman. However, as a Test captain he's too reactive and has a tendency to let the game meander along, like an absent-minded professor strolling in the park," Chappell wrote.
"Dhoni really should have been replaced as Test captain following India's disastrous tours of England and Australia in 2011-12, when his teams displayed little fight in losing eight matches on the trot."
Chappell said Dhoni seems to lack ideas when the team flounders.
"When a captain starts to hinder his team, he needs to be replaced. During that horror patch, Dhoni was unable to inspire his team and looked like a skipper just going through the motions. There's no doubt that a captain -- even the best of them -- can stay on too long, to the point where he loses his team," he explained.