The 28-year-old actor, who has played Ryan Lamb in the rural drama since 2009, explained he wanted to chase other jobs.
The soap star, who also played John Paul McQueen in Channel 4's Hollyoaks, admitted he was keen to tread the boards again and land some theatre roles. James said: "I've massively enjoyed the last two years playing Ryan and have been blessed to have worked with a group of such talented and supportive actors.
"I feel that Ryan's storylines have drawn to a natural conclusion and, although I'll be sad to say goodbye, I'm excited about what the future holds." He added: "Having trained in theatre I'm looking forward to getting back to my roots and exploring new opportunities."
Despite having only been in the show for a relatively short time, James' character Ryan has notched up an impressive number of hard-hitting storylines. The mechanic has had to deal with incest after sleeping with Maisie Wylde (Alice Coulthard), not knowing she was his half-sister, and even had a spell in jail after being falsely accused of his dad, Mark's, murder.
Emmerdale's executive producer Steve November said: "James has been a much valued member of the cast and we wish him all the best for the future."
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