"I wouldn't have a problem if Cricket Australia said to the clubs, 'he's never to be contracted again in this country'," Chappell told AAP in Sydney, where he participated in an Optus SMB Cricket Legends event alongside Tom Moody.
"And I also wouldn't have a problem if Cricket Australia said to the ICC, 'what we're doing should be worldwide'.
"You'd have to talk to the individual countries then ... but I wouldn't have a problem if it was tabled at an ICC meeting that Cricket Australia said, 'this is what we're doing and we would recommend that everybody else do the same'.
"How are you going to stop it otherwise?"
Gayle later apologised for any offence, saying it was a "simple joke".
But Chappell thought he was "past help probably now", and said the focus should be on sending a message to up-and-coming male cricketers.
"If it was a one-off thing, yeah, slap him with a $10,000 fine and say 'mate, don't do it again'," he said.
"But every woman I spoke to (about Gayle) who's working at the cricket, you got the same answer from.
"They were quite adamant about it."
Gayle is expected to open for the Renegades on Saturday, when they host Melbourne Stars at Etihad Stadium.
- AAP