Ever since being promoted into the Blues first-team squad by Frank Lampard in 2019-20, James has been regarded as one of the most promising right-backs in world football.
In 158 appearances for Chelsea, the academy graduate has contributed 11 goals and 22 assists, James also making 10 outings during the club's Champions League triumph in 2020-21.
However, persistent injuries - largely to his hamstring - have prevented the 24-year-old from becoming a mainstay in the starting lineup under several different head coaches.
James would feature for just 482 minutes during the 2023-24 campaign, leading to him undergoing hamstring surgery in an effort to overcome the issue.
Despite playing a large part of pre-season, James has since suffered another hamstring problem which has stopped him from making a competitive appearance under Enzo Maresca.
Real Madrid monitoring the situation
Given the workload that James was provided with during the off-season, the assumption is that Maresca views the club captain as a key member of his team and squad.
Malo Gusto also has a history of fitness issues in the same position, and frequently rotating the pair would likely suit all parties.
Nevertheless, according to Fichajes, Real Madrid are ready to try to tempt Chelsea into a sale during the next summer transfer window.
The report suggests that Carlo Ancelotti and club officials have not been put off by a succession of injuries to James throughout his career.
President Florentino Perez may realistically feel that there is an opportunity to sign a world-class talent for a cut-price fee, aware that Chelsea's co-owners have previously jumped at the chance to strengthen their financial position with the sales of homegrown talent.
Long-term replacement required
Real may be the reigning La Liga and European champions but each of the right-backs are over the age of 32.
Dani Carvajal is showing no signs of regressing and has the senior role at the Bernabeu locked down ahead of Lucas Vazquez, who turned 33 in July.
Even with Vazquez penning a new 12-month contract, there is an acceptance that a younger alternative will soon be required.
That said, Carvajal has recently reiterated that he is eager to continue his career at Real as long as he is wanted.