The singer was due to perform for the country at the 2020 Song Contest until it was cancelled due to the pandemic, and has now been given a second chance.
The news was announced by the BBC on Friday, with James saying in a statement: “I’m so excited and honoured to be getting a second chance at representing my country in the Eurovision Song Contest.
“I haven’t stopped making new music in lockdown and I can’t wait for everyone to hear the song I’m taking to Eurovision in 2021.”
James, who is the brother of pop star John Newman, had been set to perform the track My Last Breath at last year’s contest, but the European Broadcasting Union has said the 2020 songs would not be eligible for this year’s show.
The 2021 Eurovision Song Contest will take place in Rotterdam in May, after the Netherlands won the 2019 event.
While last year’s event was cancelled, organisers have created four scenarios to ensure it goes ahead this May.
They are now focusing on “scenario B” in which everyone attending Rotterdam’s Ahoy Arena would need to practise social distancing and submit to measures including frequent Covid-19 testing.
Acts who can travel to Rotterdam will perform live on stage, while those unable to will feature in recorded performances.
The grand final of the Eurovision Song Contest is scheduled to take place on Saturday 22 May.