Ancelotti was happy working with James last season at Goodison Park and is keen to bring him back to Madrid for the new campaign. The Colombia international won the Champions League with Ancelotti at Real Madrid and was happy playing for the Italian on Merseyside last term.
For Everton, James managed 26 appearances, scoring six goals and producing nine assists. The midfielder has a deal with the Blues to 2022, plus another 12 month option.
Florentino, meanwhile, is in agreement with Ancelotti and is confident convincing Everton to release James from his contract.
However, the midfielder will also have to agree to cut his Blues wages to seal the move.
- updated June 21