The Bayern Munich midfielder didn't start Colombia's 2-1 loss to Japan in the opening fixture but played the full 90 minutes of their 3-0 win over Poland.
However, his side's final group fixture proved a step too far for James, who was replaced by Luis Muriel after just 30 minutes.
Speculation suggests his problem is a recurrance of the injury which kept him from starting against Japan but his withdrawal is a big blow for Colombia.
Their poor opening result has meant they must beat Senegal in their final group game to make it through to the knockouts and they will certainly miss James' presence in attack.