The Glovers announced they had accepted an offer for the 22-year-old on their website this morning, and even tagged ‘West Bromwich Albion’ on their site before deleting it.
James is due to have a medical with the Baggies today and still needs to agree personal terms.
However, the full-back is expected to complete his move this week in time to be available for the season’s curtain-raiser at home to Bolton this Saturday.
A highly-rated young full-back, James played 51 times for Yeovil last season, helping them reach the fourth round of the FA Cup and the semi-final of the Checkatrade Trophy.
He scooped a host of end-of-season awards at the League Two club, and was also interesting Swansea and Hull earlier this window.
James is set to become Darren Moore’s sixth signing of the summer, and his third addition to the backline.
Albion have already signed centre-back Kyle Bartley from Swansea for £4m rising to £6m, and left-back Conor Townsend from Scunthorpe for £750,000.
James predominantly plays right-back but also featured last season at left-back, centre-back and right midfield.