The 20-year-old stopper is the second Boro stopper to join the Heed over the past two seasons, following Aynsley Pears’ loan spell with the club last season.
James has already appeared at the International Stadium in pre-season, playing the second half of Boro’s 3-1 win over Gateshead on July 10.
He has been on the books at the Riverside Stadium since the age of 13, appearing for the club’s Under-23’s 16 times last season after spending a period with Billingham Town on work experience in late 2017.
Speaking to gateshead-fc.com after signing on the dotted line, James said: “I’m just buzzing to be here and finally get it sorted.
“This is the move that I’ve been hoping for since the start of pre-season to be honest.
“This will be the first time I’ve played at this level but I feel ready to do it. I’m confident and I just hope that I can kick on from here.
“I just want to play as many games as possible because it’s my first taste of real men’s football, so playing consistently is what I’m looking to do and hopefully I can prove myself.”
The new Gateshead ‘keeper revealed that Pears had a big say in the move following his spell at the club last season, adding: “He was quite a big influence.
“I came a few times to watch him last season and he didn’t say a bad word about the place, he loved it.
“I’m just hoping to follow what he did because I think the fans are very fond of him here.”
“It was strange [playing against Gateshead for Middlesbrough].
“But now being around the place and meeting all the people here, I can just tell it’s a good club so I’m happy to be here.”