James left the Spanish capital in September to join English top flight side Everton, after falling out of favour at Real Madrid under Los Blancos boss Zinedine Zidane.
And the Toffees superstar has earned plaudits for the way he has taken to life in England, with the midfielder conducting the waves of Everton’s attacks, registering three goals and three assists in eight Premier League outings.
Martinez is of the view that James made the right decision in opting to leave Madrid, where the Everton star was shackled by a lack of game time and freedom under Zidane, according to the veteran marksman.
The 34-year-old added that the way James has shone so far in the Premier League proves his quality, with the striker stressing the positive impact Carlo Ancelotti has had in getting his charge playing back in full flow.
Asked whether he thinks James failed to capitalise on the opportunities he had at Real Madrid, Martinez told Spanish daily AS: “It is true that he had opportunities, but you have to clarify: people look at the games players have played, but what you have to see are the minutes they have played in those games.
“James would have been a key [player] in Madrid if he had had the freedom that he is now having at Everton.
“He now has a coach, Ancelotti, who knows what he can give and what he cannot.
“You have to see how good he looks now.
“He was right to decide to go to Everton, because sometimes one step back is two steps forward.”
Everton are set to welcome Leeds United to Goodison Park in their upcoming Premier League clash at the weekend and Ancelotti will be banking on the James to pull the strings in the Toffees’ attacks again.