However, the story also claims that relations between Real Madrid and Manchester United are not at their best after the Red Devils pulled out of the race to sign Alvaro Morata.
According to chairman Karl-Heinz Rummenigge, quoted on Bayern's official website, James was Ancelotti's top target. "[James] was his biggest wish following their successful spell working together in Madrid", said Rummenigge.
Since his arrival at Real Madrid, Rodriguez made overall 111 competitive appearances to provide 41 assists and 36 goals.
However, there is really no guarantee that James will be able to establish himself as a world-class player.
He will be able to work under former manager Carlo Ancelotti who believes in him
What's more, he joins a Bayern team pretty well-stocked in midfield.
Carlo Ancelotti's side has looked elsewhere for attacking reinforcement, and have now secured a loan deal for Rodriguez with the option buy the Colombia global in 2019.
United are set to complete the £75million transfer of Romelu Lukaku from Everton imminently with the Belgian global having already completed a medical in Los Angeles this weekend.
The Colombia global was regularly linked with a move to Old Trafford but has opted to pursue a new challenge in Bavaria instead.
He played for Ancelotti during the 2014-15 season, making 29 starts and scoring 13 goals in La Liga competition. James didn't appear in either of the club's two Champions League final victories, which came back to back in 2016 and 2017.