"I would give the captaincy to Robbie. Sav rarely misses a game and he is great around the place," the West Brom midfielder said.
"He wears his heart on his sleeve, is a very passionate Welshman and I couldn't think of anyone better to follow in Gary Speed's footsteps.
"It is not my decision but I think he would thrive in that role. It would give him some responsibility and I think he would grow as a player if he was given that.
"He is playing well for Birmingham and is also one of their top scorers, which I'm sure he is reminding people about."
Toshack is expected to announce who will skipper his side in the not too distant future with Aston Villa full back Mark Delaney another candidate.