Vaughan announced he was to step down with immediate effect this afternoon following the series defeat to South Africa which was sealed at Edgbaston yesterday.
Paul Collingwood also revealed he was to follow the Yorkshire batsman by quitting his role as captain of the one-day side.
Pietersen, England's star batsman, is one of the the favourites to take over both jobs, with
Andrew Strauss and Andrew Flintoff also in contention.
And Atherton insists it is the South Africa-born Pietersen who should be given the chance to lead his adopted country.
"If you're talking about someone to take on both jobs then Kevin Pietersen becomes the number one candidate because he's one of the few people who can be guaranteed their place in both teams," he told Sky Sports News.
Atherton also suggested that Collingwood may have been pressured into quitting the one-day role as England look to revert back to a single captain.
"Michael Vaughan's decision is his own decision, but I can't believe that Paul Collingwood made that decision off his own back," he said.
"Clearly they want to unite the job and get one bloke in there, and they've given Paul a gentle nudge to say that this is in the best interests of the team."
Atherton was glowing in his praise of Vaughan and was sympathetic of the pressures that moved him to step aside.
He continued: "He's been a wonderfully successful captain, England's most successful in terms of Test match wins, and is surely one of England's greatest ever captains.
"In terms of playing, captaining, leading, decision-making, Michael Vaughan is the best man for the job."
He added: "I know what he's been going through.
"It's a wonderful job but it's also a job that becomes all-consuming. He said he's not been himself at home and wanted to 'get back to being me'.
"The job gets on top of you. It's a great job but you're thinking about it all the time.
"When you're supposed to be at dinner with friends or the wife, you're thinking about who should be opening the bowling the next day and how to tell your mate he's not in the next team.
"That pressure eventually bears down on you and if you're not getting runs as well then it becomes very difficult."
South Africa captain Graeme Smith was sorry to see his counterpart quit after inadvertently delivering the knockout blow to his reign with a match-winning 154 not out yesterday.
"It has come as a shock to me," Smith told BBC Sport.
"I have the highest regard for him as person, sportsman and leader. It is a great loss for world cricket."
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