Reports emerged in recent days suggesting that Everton star James is unsettled at the club and is tempted by a potential move back to Madrid.
The Colombian only came on as a second half substitute as the Toffees fell to a 3-1 loss against Manchester City in the Premier League on Wednesday and his absence from the starting eleven further put him under the scanner.
However, Everton boss Ancelotti has played down claims suggesting James is unsettled at Goodison Park and stressed the player is happy, confident and motivated to give his best for the Toffees.
The Italian revealed that James had a small fitness issue which limited his playing time in recent outings but has since fully recovered and is in good condition at the moment.
Asked about claims that James is currently unhappy at Everton, Ancelotti told a press conference: “He is okay, he has no problems.
“I talk to him every day.
“He is happy here, confident, motivated.
“He had a little problem in the last few games with his calf but now he is in good condition.
“He really feels good here because everyone takes care of him, that is it.
“I do not know if he complaints about the weather.
“We know that it is not the best weather ever but there are a lot of good things in this area.”
Ancelotti will be hoping to have James in his full flow come Saturday with Everton making the short trip to Anfield to take on Liverpool in the Merseyside derby.