Everton are coached by Carlo Ancelotti and his presence is key in convincing James to swap Madrid for Merseyside.
Negotiations are not yet complete but are on the right track, with a €25m to €30m fee under discussion.
Ancelotti brought the best out of Colombia star James in the 2014/15 season while in charge of Madrid.
The two have a very good relationship and that is why James has given the OK ahead of other options he has.
For several seasons, James was a regular for Madrid but fell down the pecking order under Zinedine Zidane.
He spent the last two seasons on loan at Bayern Munich before returning to Madrid in June when the Germans decided not to use their option to buy.