A novel model of a semiconductor laser with optical feedback is presented, generalizing Lang-Kobayashi equations to the case of incoherent feedback. The equations are supplemented by a stochastic variable which models random phase difference between the field inside laser cavity and the feedback field. It is shown that for weak-to-moderate feedback the transition from coherent to incoherent feedback leads to replacement of dynamical chaos by almost stationary lasing with slightly fluctuating intensity. Nevertheless, incoherent feedback can lead to chaotic oscillations, but at considerably larger feedback levels.