La Repubblica says Napoli will sign the Colombian international on a loan deal from the Spanish capital.
The report further says the two club’s president has agreed on the term that the deal won’t be announced until the 15th of August.
Real Madrid want outright sale for the attacking midfielder in a bid to raise cash for their main targets, but if they are unable to get a suitor for the former FC Porto and Monaco star they would consider Napoli’s loan offer for the Colombian ace.
Atletico Madrid was interested in signing James but the injury to Marco Asensio slow down the move and Atletico interest waned down.
James was previously loaned to Bayern Munich for two seasons.