The 28-year-old wants to quit Madrid and the feeling is mutual, so Los Blancos are trying to facilitate his exit.
James has just one year left on his contract and Madrid want to avoid losing him for free next summer.
Florentino Perez is willing to accept €25m just to get James off the books, after wanting €45-50m for him last year.
Madrid prefer not to sell players to Atleti so a move to the Metropolitano Stadium is difficult.
Madrid are planning a number of sales this summer having lost money due to the Coronavirus pandemic.
And James’ wage packet of €7m-per-season is one they are desperate to get off the books.