The 19-year-old performed admirably at right-back in place of Cesar Azpilicueta, enjoying great success up against Wilfried Zaha.
And Lampard has hailed the youngster and predicted a future for him in midfield as well as his preferred right-back role.
"Right-back would be his favoured position," Lampard claimed. "Whether it be there, right wing-back or right of a three.
"As he’s coming into the team, you’d see him there but he does have that all-round game that he could handle playing centrally in midfield if needs be.
"At the moment we’ve got good players in there who are used to playing in there anyway, but he could always do that as he matures through his career."
Lampard now has a selection headache for after the international break.
He could bring Azpilicueta back in, or utilise James as an extra man in midfield against the Premier League champions Man City, who sit a point behind the Blues after defeat to Liverpool.