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The Eagles are in the market for a new right-back after Aaron Wan-Bissaka’s £50m switch to Manchester United.

Palace have been linked with a number of potential suitors, including Carl Jenkinson, Nathaniel Clyne and Timothy Castagne.

James is the latest name on their shortlist after impressing on loan at Wigan last season.

But Palace have been dealt a blow in their pursuit of the 19-year-old.

Starsport understands Chelsea have rejected a £20m bid for James.

The Blues see their academy product as a prospect for the future and they’re not willing to let him go while they have a transfer ban.

James is currently recovering from ankle ligament damage he picked up while representing England under-20s at the Toulon Tournament.

But he’s expected to be back in action by September and Palace are willing to wait.

(Image: GETTY)

(Image: GETTY)

Roy Hodgson currently has Joel Ward and Martin Kelly to deploy at right-back.

The former England boss is keen to bring in extra depth before the window closes.

Palace followed up a humiliating 6-2 pre-season defeat at Barnet this week with another loss at Nottingham Forest on Friday.

And Hodgson has sent a warning to the board by bemoaning his lack of options.

(Image: GETTY)

"We've got enormous problems at the back at the moment," he said.

"We really don't have any defenders, to speak of.

“Aaron's gone and we've got three others injured.

"We will have to do the best we can to make sure we replace [Wan-Bissaka] in some way."