The Colombian arrived at Goodison Park last summer and was a fixture under then manager Carlo Ancelotti whenever he was fit.
James had multiple spells on the sidelines owing to fitness issues last term and was notified he was not part of new boss Rafael Benitez plans at Everton.
The Toffees were unable to offload James last month despite interest from FC Porto but are now close to finding him a new home in the Middle East.
Qatari side Al-Rayyan are on the verge of sealing a permanent move for the 30-year-old and will present him as their new signing against Al-Saad.
James will earn a figure of around £6m in annual wages at Al-Rayyan, including bonus payments.
The Qatari Stars League side see the Colombian superstar as a marquee signing and have handed him the number 10 shirt.
Everton were hamstrung by Financial Fair Play rules in the last transfer window, restricting them to doing most of their business in the free agent market.
By shedding James’ £220,000 a week salary from their wage bill, Everton will have considerable space on the books to bolster their squad in the January transfer window.