"I can't see it affecting Dave," Pearce told BBC Radio Bristol.
"We'll pick up the games, see how he's playing and take it from there. Being a goalkeeper, it's a specialised position so it shouldn't be a problem."
Fabio Capello's right hand man remembers being in the same shoes as David James back in the early nineties.
"A similar thing happened to me when I was England captain and got relegated with Nottingham Forest, " said Pearce.
"The first phone call I made was to the England manager at the time Graham Taylor.
"I asked him if I stayed at this club and didn't play in the top flight would that be the end of my international career and he said definitely not."
And England's U21 manager was not entirely surprised by James's move to Bristol City
"Don't forget I was his manager at Man City when he wanted to move south to be nearer his family," he added.
"The fact that he has chosen not to play elsewhere in the country at a higher division shows that he is quite passionate about playing in the west country.
"But also he'll think that he has an opportunity in a season's time to be playing in the Premier League with Bristol City."
Source: BBC Sport
Source: BBC Sport