The 25-year-old right-back has signed a one-year deal to join the League Two club as they gear up for the 2021/22 season.
James told the club website: "It's a new challenge for me and something I'm really looking forward to. I can't wait to get out on the pitch and get going now.
"I'm versatile, I can play anywhere along the back four, but mainly a right-back who likes to get forward, and like to get assists and goals along the way. But primarily of course I'm a defender, and that's the main job."
The 22-year-old was a summer signing in 2019 by former Easter Road boss Paul Heckingbottom. In total he made just 12 appearances, scoring once in a League Cup clash against Alloa Athletic.
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He fell completely out of favour after the arrival of Jack Ross and spent last season on loan at Wigan Athletic and Salford City.