The Portuguese boss had endured a controversial and disappointing season before the Blues brought to an end his two-and-a-half year second spell at Stamford Bridge.
Nevin, who made 193 appearances for the west London side, thinks Mourinho was the right man long-term to take the club forward.
“I felt he would ride out this one, purely because they had waited this long,” Nevin told BBC 5Live.
“There was a desperation from Chelsea to ride this one out.
“They wanted to change the system they had of changing managers every years or two. They wanted to try and build a dynasty.
“If you’re into ‘short-termism’ then I think it’s the right decision. ‘Longer-termism’, I think the guy is a great manager – he will go somewhere else and become a great manager again.”
“You might find yourself somewhere longer down the line feeling you’ve made a mistake.”