The teenager, a product of the Blues academy system, joined the Latics on a temporary deal last summer and has caught the eye with his performances in the Championship.
Chelsea are currently awaiting the result of an appeal against Fifa’s decision to ban them from signing players for the next two transfer windows.
The appeal will be heard on 11 April, but could be taken to the Court of Arbitration for Sport if it is rejected, and the club might have to look elsewhere to fill out their squad.
The Evening Standard believes that James’ form for Wigan could see him promoted to the first team, where he would become deputy to first choice right-back Cesar Azipilicueta.
James, who was voted into the EFL Championship team of the season recently, would take the place of wantaway Italy international Davide Zappacosta, who hasn’t made a single Premier League start under Maurizio Sarri this season.
The former Torino player is said to be angling for a move back to his home country after Lazio made an attempt to sign him in January, only for the two clubs to fail to agree a fee.
The outlet adds that Gary Cahill, Danny Drinkwater and Rob Green are likely to also depart the club at the end of the campaign.
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