Bayern bounced back from their Champions League exit at the hands of Liverpool in style on Sunday, returning to the top of the Bundesliga after Borussia Dortmund had beaten Hertha Berlin a day earlier.
With Robert Lewandowski opening the scoring early on, James put Bayern further ahead before rounding off his hat-trick in the second half – Kingsley Coman and Alphonso Davies also getting on the scoresheet for Niko Kovac's side.
Reports in Spain had suggested that James – whose two-year loan from Madrid is due to expire at the end of the season – would not be extending his stay in Munich, but the Colombia playmaker revealed his wishes to stay at Bayern.
"Nobody knows what the future brings," James told Sport1. "The clubs will hold talks.
"I'm very happy and I feel comfortable here. Kovac is a good coach, I am sure we can still win many titles with him."
Bayern have now won 13 of their last 14 Bundesliga matches and Kovac was thrilled with his side's spirited response to their Champions League disappointment.
"That we are first again, that makes us happy. There was a lot of width today, a lot of spirit, lots of good actions," Kovac told a news conference.
"We had a very good start. That's important after the disappointing match on Wednesday, that the team showed such a good reaction.
"We could shake the disappointment off together. We can go into the international break calm now, and hope that everyone comes back healthy."
The Bavarian giants are level on points with Dortmund at the top, though lead on goal difference, with a crunch clash against their title rivals coming up on April 6.