According to Ouest-France, Wolves have offered Rennes just over €10m for the 22-year-old midfielder as they look to secure his services.
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James would prefer to remain in the Premier League, but a move to the Championship remains possible, with his future still undecided.
The Welshman impressed on loan at Leicester City last season, scoring 11 goals and providing four assists in 34 Championship appearances, including 27 starts.
James came through Birmingham City’s academy before joining Rennes for €5m in 2024. He made 25 appearances during his debut season but struggled to establish himself as a regular.