The south coast club are on the hunt for a new boss following the sacking of Tony Adams on Monday, with Mexico chief Eriksson, former Charlton and West Ham manager Alan Curbishley and ex-Chelsea boss and Portsmouth Director of Football Avram Grant reportedly in the frame.
Eriksson, sacked by Manchester City at the end of last season after just one year at Eastlands, is currently finding the going tough in South America.
Mexico are currently struggling to qualify for the 2010 World Cup, losing their latest qualifier 2-0 to the USA on Wednesday.
"Somebody of his calibre would be a tremendous acquisition for us," said James. "Having a former England manager as manager of Portsmouth I'm sure is something that the fans would never have envisaged.
"Things change very quickly in football. Last season we won the FA Cup and people were talking about the Champions League. Now we need to push up the table. Fundamentally we are the same side so in some respects it is shocking to see the drastic change in form.
"Sven dropped me a few times, so it would be interesting if he did come in. But when you have players with the ability and quality we have, I think any manager of Sven's high calibre would turn a decent side into a good one again."
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