No contract renewal talks have taken place with a South American star, according to the Toffees manager, since his imminent future is already secured.
Everton is yet to hold negotiations with
over a new contract, with
saying that no talks are necessary at the moment because the Colombian is already signed to a lucrative contract and is "happy" at Goodison Park.
During the summer of 2020, the Toffees pulled off a coup by luring a world-class talent away from Real Madrid.
James has struggled at times during his first season in English football, but he is settling in and seems unconcerned about extending or terminating his contract, which is set to expire in 2022 with a 12-month clause beyond that.
Ancelotti responded to a query about James' deal from reporters ahead of aPremier League
match against Aston Villa:
"We didn't talk about an extension, I'm not involved in this.
"His contract is quite clear, he has two years plus one option. And so I think we have time to talk about this because he has another year of contract plus an option.
"I don't think we need to talk about this. Maybe in the next few months we can talk about this.
"I think he's happy here."
James is evidently part of Everton's long-term plans, despite Ancelotti's interest being diverted elsewhere.
He has moved the Toffees into European qualification contention this season, intending to bolster the squad over the next transfer window.
Quizzed about recruitment plans, the Italian mastermind said:
"It's a club that has a clear project. In this clear project, you need to invest because you want to improve and be better in the future.
"We didn't talk for the next season at least, but we are going to talk in the next few weeks at least to try and improve the squad and to be better next season.
"This is the idea we have and that everyone in the club has. This season, I don't know how we're going to finish, but until now we've improved a lot compared to last season.
"The improvement was there, I think we can step up quickly if we have a good position in Europe for next season, but also we can step up and put in place a good programme for next season."