The Chelsea defender, who featured just once at Euro 2020 as England reached the final, withdrew from the last Three Lions squad through injury.
James, has scored three goals and created one other in four league games since October’s international break.
“This is probably the best I have performed,” James said.
“At this moment in time our team is performing well and creating a lot of chances, so it’s obviously helping.
“When you are playing week in and week out, and you are playing well and the team is performing, keeping clean sheets and winning games in style, it obviously helps build everyone’s confidence.”
Only Liverpool’s Mohamed Salah, Michail Antonio of West Ham and Leicester City’s Jamie Vardy have been directly involved in more Premier League goals than James this season.
The right-back, who is looking to add to his eight caps as England attempt to secure their place at next year’s World Cup in Qatar, said Chelsea boss Thomas Tuchel has helped him improve as a player.
“The style of play from the start of last year to now has changed – our formation has changed, what he demands from the players has changed,” James said.
“He wants everyone to be attacking non-stop, constantly attacking the box, and I think that has helped this season so far.”
James also said “it was difficult to take” being limited to just one appearance during the summer’s European Championship after helping Chelsea win the Champions League.
He faces competition at full-back in the current squad from Liverpool’s Trent Alexander-Arnold and Manchester City’s Kyle Walker, with Atletico Madrid’s Kieran Trippier rested.
England boss Gareth Southgate says he “has faith” that his squad will qualify for Qatar 2022 with qualifiers against Albania at Wembley on 12 November and San Marino on 15 November.
They require four points from those games to book a World Cup spot.
“If I wasn’t trusted, I wouldn’t be here,” James said.
“Obviously it is always tough not playing when you want to play and when you feel like you should be playing.
“That comes with how many good players there are in the team. In every position there are two or three players that should be playing, that is how high the standard is.
“Competition is very tough. Trent [Alexander-Arnold] has obviously been at the top for quite a few years, and Kyle Walker as well. Each of us have a different style of play.”