James has emerged as a transfer target for Napoli, who want to reunite the Colombia star with former Real Madrid and Bayern Munich boss Ancelotti.
The 27-year-old's future is uncertain after Bundesliga champions Bayern Munich opted not to take up a permanent transfer following a two-year loan deal from Madrid.
Amid ongoing speculation over James, Ancelotti told reporters: "I don't know if he'll come, but we hope so.
"I know him very well, he can play in all the midfield positions. I used him as a left winger, as a number 10 and or even on the right.
"His position on the pitch isn't a problem. He's adaptable, he can play in many positions.
"As for the number 10 shirt, the important thing is that he puts on the Azzurri jersey. His number isn't important. However, he needs time and patience."
Napoli are reportedly interested in taking James on loan, though Madrid want a permanent sale and €42million as they look to raise funds amid a busy transfer window.
While Napoli are favourites to sign James, LaLiga's Atletico Madrid are believed to be monitoring the situation.