James made a move to the Premier League before the closure of the last summer transfer window and says he held talks with the Rojiblancos but Los Blancos blocked the move.
The former Monaco star was once considered as one of the best players in the world following his exploits in the 2014 World Cup with Colombia.
The hype behind James has fizzled out in recent years after he was left on the fringes by head coach Zinedine Zidane during his last days at the Santiago Bernabeu.
James admitted he knew his chances under Zidane would be slim and he considered playing for Diego Simeone’s men before eventually joining the Toffees.
"It was nearly a done deal to go to Atletico, I spoke with Simeone, he said I could be important, and [Real] didn't let me go,” the 29-year-old told ESPN.
“[Real president] Florentino Perez knew that with Zidane that I wouldn't play much. It was a bad year, I wanted to come to Everton to play and show what I can do.”
"I'll say it with all sincerity that if Carlo weren't here, I wouldn't have come.” he added. "I [have] started to get to know the club, how they work, how they want to work, win things, play in Europe. The fact that Carlo is here was fundamental to me coming, where I am learning every day."
James is currently relishing his stay at the Goodson Park in his debut season, having scored five goals and registered four assists in 18 Premier League appearances.
