Napoli coach Carlo Ancelotti is watching James Rodriguez's situation at Bayern Munich.

James is in the second season of a two-year loan from Real Madrid, but has found himself at odds with coach Niko Kovac.

The pair are not getting along, with Kovac not a fan of James' style, while the midfielder has questioned the coach's tactical ambitions.

A permanent deal is now in jeopardy and Tuttosport says Ancelotti is keeping tabs on developments.

James was outstanding for Ancelotti at Real Madrid and also enjoyed a solid six months with the Italian at Bayern before his dismissal.

Bayern can sign James for a set fee of €42m.