The flamboyant designer - who is the creative director of the French fashion house - insists he is in no rush to step down from his current role but admitted he has been thinking about who he would like to take over the reins.
He said: "I have a contract for life so it all depends on who I would like to hand it to. At the moment I'd say Haider Ackermann."
Haider - the Colombian designer who cites Tilda Swinton as his celebrity Muse and produces menswear and womenswear for his own label - admitted he was "immensely touched" by the praise from The Fashion legend.
He said: "What can one possibly say to such a phrase?! Such a compliment! Honoured I feel, how can one not be?! In all honesty tremendously, immensely touched especially coming from Monsieur Lagerfeld."
The citing of Haider as a possible replacement is in marked contrast to the Lagerfeld's usual answer when asked about retirement.
He has previously said: "The world can count on me for a long time. Retirement is not one of the topics with which I deal. Why should I? I still have so many projects that I sometimes don't know where to begin. Chanel will still need some clothes when I'm 89."