Asked by BBC Radio Bristol about the prospect of James arriving at Ashton Gate, Coppell replied: "I can't confirm or deny that.
"I never talk about individual names. If a deal is done I'll speak about it."
James, who played in three of England's games in this summer's World Cup, recently pulled out of transfer talks with Celtic.
The former Liverpool and Watford player, capped 50 times by his country, lives in Exeter.
Meanwhile, Coppell admits he is frustrated by the lack of transfer activity at the club. "We've spent the last three days on the phone trying to generate business," he added.
"I try my best to identify players who I think would be good for us, then negotiation is someone else's job. As yet we just haven't been able to push too much over the line.
"It's disappointed me. I would have thought we would have been able to conclude a few more deals than we have done at the moment."
Coppell was cheered by a 3-1 win at Yeovil on Wednesday night which halted a pre-season run of three consecutive defeats, though an injury to Kalifa Cisse provided another setback.
A Sam Williams spot-kick gave Yeovil the lead, but goals by Ivan Sproule, David Clarkson (penalty) and Marlon Jackson sealed City's victory.
Source: BBC Sport
Source: BBC Sport