The 19-year-old defender is yet to make a competitive appearance for the Blues.
He is a product of a famed academy system at Stamford Bridge and formed part of the loan army which headed out of west London in 2018-19.
A first taste of regular senior action was taken in at Wigan Athletic, with the youngster helping the Latics to fend off the threat of relegation out of the Championship.
James made 46 appearances across all competitions, missing just one second tier outing, and was named Player of the Season at the DW Stadium.
His exploits have caught the eye of many, with former Liverpool defender Lawrenson of the opinion that the highly-rated full-back would be a welcome addition to Jurgen Klopp’s ranks at Anfield.
He told the Daily Star: “Recruitment is the biggest thing for any club now and I don’t think Klopp will go mad in the transfer market this summer.
“But I tell you who I’ve seen - and I don’t think they could easily get him - the right-back at Wigan, on loan from Chelsea, Reece James.
“In that league he makes it look so ridiculously easy. I think he could make the step up.
“But of course he belongs to Chelsea at the moment.”
The Reds have spent big in recent windows, bringing in the likes of Virgil van Dijk and Alisson, but have also found value elsewhere.
Xherdan Shaqiri was acquired from Stoke for just £13 million, while Andy Robertson has proved to be quite the bargain after arriving from Hull City in an £8m deal.
Lawrenson added on Klopp’s exploits in the transfer market: “If you can spend £75m on one player, but nick someone else on the cheap and put the two together then it can be good business.
“The thing with Andy Robertson is they sold Kevin Stewart to Hull didn’t they. It was virtually pound for pound so what a fantastic deal that was.”