Novel corona virus COVID‐19 has spread rapidly all over the world. Due to increasing COVID‐19 cases, there is a dearth of testing kits. Therefore, there is a severe need for an automatic recognition system as a solution to reduce the spreading of the COVID‐19 virus. This work offers a decision support system based on the X‐ray image to diagnose the presence of the COVID‐19 virus. A deep learning‐based computer‐aided decision support system will be capable to differentiate between COVID‐19 and pneumonia. Recently, convolutional neural network (CNN) is designed for the diagnosis of COVID‐19 patients through chest radiography (or chest X‐ray, CXR) images. However, due to the usage of CNN, there are some limitations with these decision support systems. These systems suffer with the problem of view‐invariance and loss of information due to down‐sampling. In this paper, the capsule network (CapsNet)‐based system named visual geometry group capsule network (VGG‐CapsNet) for the diagnosis of COVID‐19 is proposed. Due to the usage of capsule network (CapsNet), the authors have succeeded in removing the drawbacks found in the CNN‐based decision support system for the detection of COVID‐19. Through simulation results, it is found that VGG‐CapsNet has performed better than the CNN‐CapsNet model for the diagnosis of COVID‐19. The proposed VGG‐CapsNet‐based system has shown 97% accuracy for COVID‐19 versus non‐COVID‐19 classification, and 92% accuracy for COVID‐19 versus normal versus viral pneumonia classification. Proposed VGG‐CapsNet‐based system available at https://github.com/shamiktiwari/COVID19_Xray can be used to detect the existence of COVID‐19 virus in the human body through chest radiographic images.