James lasted just 29 minutes of the Blues' 1-0 defeat to Manchester City on September 25 after twisting his ankle, but the defender was selected for Gareth Southgate's squad regardless.
However, Thomas Tuchel affirmed that there was no chance James would be taking part in October's World Cup 2022 qualifiers with Andorra and Hungary, joking that the 21-year-old would only be able to turn out for the water polo team.
Now, James's withdrawal from the squad has been confirmed, with Southgate electing to call up fellow Champions League winner Chilwell as his replacement.
The ex-Leicester City man has largely struggled to displace Marcos Alonso on the left-hand side at Chelsea this term, but he started and scored in the Blues' 3-1 win over Southampton at the weekend.
Chilwell was selected for Euro 2020 but did not play a single minute at the tournament, and he will be joined in the England camp by former teammate Tammy Abraham following his own call-up earlier on Monday.