The 44-year-old who has played in big leagues and teams such as Liverpool, Manchester City and Portsmouth during his professional career, is said to have blown his £20million fortune.
According to Daily Mail, James has decided to sell around 150 items of signed merchandise through Kent-based auctioneer Hilco.
Some of the items on the list include a signed Frank Lampard shirt, a bright pink Portsmouth goalkeeper jersey and a NFL jersey.
James has even put up for auction shirts worn by Chelsea's Petr Cech in the 2010 FA Cup final against Portsmouth, a Holland jersey he swapped with Edwin van der Sar and a Michael Owen No 10 kit with 'best wishes' penned across it.
Currently James, who is also a part of the BT Sport's media team, is playing in the 10-week long Indian Super League along with fellow former Premier League stars such as Robert Pires, Freddie Ljungberg and Nicolas Anelka.
James, who made 53 appearances for England between 1997 and 2010, was forced into paying his ex-wife Tanya £3m in 2005 as part of their divorce settlement.
Image: David James
Photograph: Alex Livesey/Getty Images
ISL: Mumbai City FC do a Dr Jekyll and Mr Hyde
Champions League: With eye on knockouts, City have no margin for error
ISL: Pires, Fikru get two-match ban, fine; Atletico coach Habas suspended for bust-up
ISL: Anelka strike helps Mumbai edge past Kerala
ISL: Probe launched after Pires assaulted by Atletico de Kolkata coach