The British tabloid has claimed that Everton, Leicester and United are interested in securing the services of James in the summer transfer window.
The Sun has credited Crystal Palace, Bournemouth and Burnley with interest in the England Under-20 international full-back.
Advantage Leicester City?
Leicester may have an advantage in the race for James due to the presence of Brendan Rodgers as their manager.
The former Liverpool manager worked as a coach at Chelsea, and his connections at the London club could give him an edge over the likes of Everton, Palace and Bournemouth.
Moreover, Chelsea may not be willing to sell James to Manchester United, their direct rivals for a place in top four of the Premier League.
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