James left Everton for the Qataris last week.
Transfermarkt via AS reports Al Rayyan coughed up €8m for the Colombia international.
It represents a bumper profit for the Toffees, which took James on a free transfer the previous summer from Real Madrid.
At Al Rayyan, James will work with senior coach Laurent Blanc.
After missing the Copa America due to injury, the 30 year-old James was available to Everton manager Rafa Benitez and joined preseason training at Finch Farm over the summer. However, while he enjoyed minutes in preseason, James never saw action under Benitez before being shipped off to Qatar.
With the Toffees, James played 26 games last season, scoring six goals and producing nine assists. He made the move to join Everton thanks to the presence of his former Real Madrid and Bayern Munich coach Carlo Ancelotti.
- updated September 27
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