James, 39, has signed a 12-month contract at Ashton Gate after deciding he wants to remain in the south.
He had been offered a deal to stay at Portsmouth, but that was withdrawn after the club felt he took too long to decide his future.
"I've had offers to stay in the Premier League, but it is more important I play football for the right club and be a family man," he said.
"I had a long conversation with the chairman and liked what he said about the club and his ambition. I know all about his plans for the new stadium."
James started the World Cup as understudy to Robert Green in England's squad, but started the remaining three games for Fabio Capello's side.
Hull City's goalkeeper Boaz Myhill, 27, was due to hold talks with West Bromwich Albion on Friday.
The Baggies have made an offer believed to be £1.5million for the player.
Leeds United have completed the signing of centre-back Alex Bruce from Ipswich Town.
Bruce, who also held talks with Sheffield United, has signed a two-year contract at Elland Road. The transfer fee has not been released.
"Everyone knows the kind of club this is. It's a huge club with a massive fan-base and a great support," he told the club's official website.
"It's a good ambition of mine to help this club get promoted again."
Barnsley have announced the signing of striker Jeronimo Morales Neumann from the Argentinian side Estudiantes.
The forward, 24, has signed a one-year deal with the option for a second year.
Millwall expect forward Shaun Batt to miss the whole season with damage to ligaments in a knee and a hamstring.
Batt, 23, joined the Lions on a permanent basis from Peterborough United this summer after scoring three goals in 16 appearances for the London club while on loan last season.
Swansea City have turned down a bid from Blackpool for their Spanish defender Angel Rangel.
Coventry City have completed the signing of Colchester United striker Clive Platt for a nominal fee.
Platt, 32, has agreed a one-year contract with the Sky Blues, with an option for a further 12 months.