The Brazilian has been a standout performer in recent weeks for the Rossoneri and the current Russia coach says the attacker can inspire the team to future success.
Kaka notched his 99th goal for the Rossoneri and his third strike in as many games during Milan's 3-1 win over Catania on Sunday.
The result puts an end to the club's woeful run in Serie A and Russia coach Capello, who was in control of the Rossoneri when they went 58 games unbeaten between 1991 and 1993, says Kaka embodies the spirit of the classic Milan side.
"The Rossoneri have gone bad, but the desire that we saw yesterday is the right one, with star players such as Kaka, who sets the example and carries forward the spirit of the old Milan," Capello told reporters during an award ceremony for Italian football's Hall of Fame. "The Brazilian has taken the team on his shoulders, giving the sense of the life of the dressing room and the right winning mentality of Milan."
Capello also backed Milan president Silvio Berlusconi's decision to appoint daughter Barbara alongside current CEO Adriano Galliani, despite the 69-year-old previously indicating he would step down from his role.
"At Milan, I think the right solution was found. There are now two CEOs who believe they will help to grow a Milan side that has all the chances to move up the rankings," he said.
Capello also commented on the nature of songs sang by young Juventus supporters in the encounter with Udinese at Juventus Stadium on Sunday.
"After what happened I would pose a few questions," he said. "If you bring children to insult opponents of their team it means there are big problems in terms of ethics and sportsmanship in this country.
"Had I been at the Juventus Stadium I would have asked the speaker to intervene to put an end to some singing."