Remove the existing recessed leather panels and arm wrapped panels using pliers, a flat screwdriver and a putty knife. Pull out the tacks, staples or nail head trim with the pliers. Pry up the leather or staples with the flat head of the screwdriver and use a putty knife to scrape and lift the glued edges. Keep the leather intact as much as possible. Repeat for all of the leather on the chair.
Flatten out the leather. Place the leather over the upholstery fabric. If you are using leather, treat the ends of the leather the same way as the existing leather. If you are using a low-fray fabric you might want to turn the edges under for a cleaner finish. Allow for additional material along the edges of your fabric if you will turn the fabric under. Cut out your first piece.
Examine the area of the furniture where your first piece will fit. In older furniture the stuffing can decay and fall apart. If the stuffing is bad, remove the stuffing and replace it with quilt batting cut to the correct shape. Glue the batting to the chair enough to hold it in place.
Position your new leather or fabric piece over the recessed area. Check the fit. Leather can be stapled directly to the chair along the edge of the recessed area. Fabric may need to be folded under and glued before being stapled into position.
Hot glue double welting along the edge covering the staples and the edge of the wood. Double welting is a trim made of two pieces of cord wrapped in the fabric being used for upholstery. Other trims or nail heads can be used instead of double welting. Repeat this installation process for each piece of leather.