The former England goalkeeper signed a one-year rolling contract last summer and has the option of spending another season at Ashton Gate if he wishes. Although the 40-year-old has yet to officially notify the club of his intention to stay, he has given the strongest indication yet he will still be a City player when the new season kicks off in August.
"I'll be here, for sure," James told the Bristol Evening Post.
"I checked with my agent and asked him if I needed to sign anything and I don't think I do. It's a carry-on clause and that is what I intend doing.
"The fact there was the option of a second year was a massive incentive to me when I first signed my contract because I didn't just come here to be put out to grass and see out my career, and what I've seen since the first 10 games is what I signed for in the first place - a side capable of doing things.
"We've shown during the second part of this season what we are capable of when the team plays with belief and I think the future is exciting. I want to be a part of that and to try and help Bristol City reach the Premier League."