The Manchester Evening News says United have no intention of letting James leave the club on loan this summer.
The 22-year-old winger joined United in a £15million deal from Swansea City almost exactly a year ago and has surpassed many people's expectations at Old Trafford, scoring four goals and laying on six assists - after becoming a regular under Ole Gunnar Solskjaer.
And although it was reported earlier this week that United could sanction a loan departure for the 2020/21 season, amid their interest in Borussia Dortmund wide man Jadon Sancho, James is set to stay.
The door could be open, however, for James to get a bumper new contract as reward for his excellent debut season at United, though it's understood there have been no talks between the club and the player's representative. That situation will be reviewed when the season is finished.