The Toffees have added two wingers to their ranks this summer but are on the lookout for further additions in the attacking department.
But Everton are hamstrung by Financial Fair Play regulations and they need to make space in the squad by offloading players before they can make moves for any targets.
Everton have identified Porto winger Diaz as potential recruit in the ongoing window and are prepared to pay £21.5m for him, but they are not his only admirers.
The Toffees’ Premier League rivals Chelsea and Spurs are keen on Diaz and both clubs are have been linked with considering tabling a bid for him.
However, the Merseyside outfit could include James as a makeweight in a potential swoop for Diaz, with it claimed he must be involved for the deal to happen.
The 30-year-old is out of favour under Rafael Benitez and is heavily linked with leaving Goodison Park this summer.
James is among the highest earners at Everton and if they can include him in a deal for the Porto man, it would help the club shed a huge amount from their wage bill, which is currently spent on a player that is expected to not play a key role under Benitez if he stays beyond the window.
It remains to be seen where Diaz will be playing his football when the transfer window closes.
