Pompey are chasing Scotland's Young Player of the Year and Hateley told The News: "Paul Hart could be the right manager for James.
"He's the sort of person with the experience of working with young players - like he did with Leeds and Nottingham Forest - who could help him. He could bring him in and out of the side for three or four games and have a look at what he can do. Paul has the ability to do that and has proved that in his time.
"If they have bid £500,000 it is a cheeky bid, almost car-boot sale cheap. Portsmouth would need to bid at least twice what they have so far when you look at what is being paid for average Premier League players nowadays.
"He's a lively player who can play wide in midfield. He has that little bit of cheekiness about him and can get hold of the ball and make a pass as well as score goals. Whether he can cut it in the Premier League is the big question. There have been a lot of clubs looking at him, but it's up to someone to make that leap.
"You can always question when the right time is for a player to go or not. Really, I'd say another year in Scotland would suit him, but the door seldom opens to move into the big time. It's difficult to say whether he has the ability, but being on the big stage and playing with better players will bring him on again.
"He is a good, young player and there is a lot more to come from him."