However, he has made a quicker recovery than expected, and he could make the Blues squad for their FIFA Club World Cup campaign.
James may not be fully fit to play, but may be available for the first leg of the Champions League last 16 tie against Lille on February 22.
The west London giants will entertain the French champions before the reverse meeting at Stade Pierre Mauroy in the middle of March.
James' availability will be a big boost for the Blues. He has been in sublime form from right wing-back this term with key goal contributions.
The 22-year-old has registered five goals and six assists from 23 appearances in all competitions for the Blues this season.