Sessegnon has been heavily linked with a move to Tottenham following Fulham’s relegation to the Championship.
Champions League winners Liverpool are also said to be keen on the England Under-21 international.
Sessegnon, who can play both at left-back and on the wing, started 26 of Fulham’s Premier League games last season, scoring two goals.
Kelly can see the 19-year-old being used as a left-back at Spurs and replacing Danny Rose if he were to leave the club.
“Obviously with the paper talk about Sessegnon, Tottenham are really chasing after him,” Kelly said on talkSPORT.
“That’s a direct replacement for Danny Rose and I think he is a star going forward.
“Someone like [Mauricio] Pochettino will only improve his game.
“He was in a poor defensive side last season at Fulham, my old club as well. But you can see his stock rising.
“If Tottenham get hold of him I think they will be almost the best club for him to go to.”
Midfielder Christian Eriksen has been linked with an exit and he revealed earlier this month he may be open to a new challenge.
Kelly says the Denmark international will be difficult to replace.
“Eriksen, he’s one of those, he’s almost irreplaceable,” he added.
“He could play in almost any team in the Premier League.
“He’s such a good talent, his vision, his delivery, his execution of the pass.
“He’s going to be a huge loss to them.
“Obviously they’re going to have to get a huge amount of money and we all know Daniel Levy is a tough negotiator.
“So he’s going to try and get the most for him if he is to go. But how do you replace him?”