James has been heavily linked with leaving Everton this summer as Rafael Benitez looks to move the Colombia international off the books.
Everton are looking to include the 30-year-old in a deal for Porto man Luiz Diaz, which would we see the midfielder going to Portugal on a temporary basis.
But it has been claimed that James could move to AC Milan instead of Porto in a deadline day move, with the Serie A giants suggested to have reached an agreement with his representatives and keen to sign him on a free transfer.
However, according to Italian outlet Tutto Mercato, the Rossoneri have dismissed claims that they are looking to snare away James to the San Siro.
AC Milan are keen on bolstering their midfield by bringing in an attacking midfielder, but James is not among their current list of targets.
The Milan outfit were interested in acquiring James’ signature earlier this summer, but they decided to not pursue a move for him with the fitness issues he had last season and have not rekindled their interest in him.
Everton need to offload players before they can pursue deals for any of their targets owing to Financial Fair Play regulations.
Moving James on would free up space in Everton’s squad and on their books, but AC Milan will not be his home for next season.
