The Indo-Canadian pair will be the top seed for the tournament.
Bhupathi won his 50th career doubles title last season and will look at Chennai Open as the ideal platform to start the new year on a winning note.
The 38-year-old Indian teamed up with countryman Rohan Bopanna to compile an impressive 34-22 match record and 2-3 in finals before the duo announced their decision to play with different partners in 2013.
With Max Mirnyi of Belarus, 40-year-old Nestor finished at No. 2 in ATP Doubles Team Rankings with a 4-2 record in finals, capturing titles in Brisbane, Memphis and Roland Garros for the second year in a row.
Tournament director Tom Annear said, “We are pleased that Mahesh Bhupathi and Daniel Nestor have chosen the Chennai Open to begin their new partnership. They are talented and mature players and respect each other’s game. We’re sure they will be a pair to watch out for in the new season.”