James is halfway through a two-year loan agreement after leaving Madrid for Bayern, who have the option to purchase the Colombia star permanently in 2019.
The 27-year-old has excelled in Bavaria, where he helped Bayern retain the Bundesliga title last season, though he has been linked with a Madrid recall following Cristiano Ronaldo's sensational move to Juventus.
James, however, appears content at Bayern – who are seeking their seventh successive league trophy in 2018-19.
"So far, I'm still here and I've had a spectacular first season so I'm very happy there," James told Colombian TV program The Suso Show .
"I feel like the club and the fans love me very much."
James appeared 39 times in all competitions for Bayern last season, contributing eight goals and 15 assists.
The Colombian has been linked with moves away from the German giants this summer, including a possible return to Real Madrid, but Bayern Munich's chief executive officer Karl-Heinz Rummenigge moved to squash those links last week.
“[James'] contract situation is well known. Rumours that originated in Spain aren't true," he told a press conference.
“I can say with certainty – and I'm assuming it'll go beyond this – James will play at Bayern [this season].”