The former X Factor winner has signed a new contract with Columbia Germany after being dropped from Simon Cowell's Syco label in 2014.
He shared the happy news via Twitter, telling fans: "After a crazy 15 months I'm so happy to be able to say that I've signed a worldwide deal with a major label and releasing album 2 in 2016.
"I want to say a huge thanks first of all to my incredible fans for the love and support you have shown me. Without you.. God knows what.
"Thanks to my amazing publishers @sonyatvpubuk my new management team @hallornothing @JGGMedia you have helped me turn it around xxx
"Excited about the future!
"Thanks to @columbia_de @ColumbiaRecords can't wait to finish this album with you."
James confirmed his exit from Syco in June last year, saying: "Just to clear things up - I am no longer with Syco. I would like to thank all at the label for making a great record with me. I now have to move on and do something different - the future is bright! #LOVE."
After winning the ninth series of The X Factor in 2012, James went on to achieve a number one hit with 'Impossible'. His debut album hit number two in the charts and spawned the singles 'You're Nobody 'Til Somebody Loves You' and 'Recovery'.