The versatile left back had been offered fresh terms by Rovers as he approached the end of his deal but indicated his desire to await potential offers from Championship clubs.
“I’m absolutely delighted,” James told the official Blackpool website. “As soon as I knew there was a bit of interest, it was something that I really wanted to follow up and jump at.
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“Playing in the Championship was something that I’d set out to do following what had happened in the season, so it was a massive pull to come here and play in the Championship.
“In the two games that I played against Blackpool, I knew exactly what they were like.
“They were organised, defensively solid, very good on the ball and obviously very lethal in the attacking third.
“Even from the games that I’ve watched from afar, with the play-offs and the play-off final, it was something that I really wanted to be a part of.”
“He’s somebody that I’ve always been impressed with, going back to his time with Manchester United when he was younger.”
The 27-year-old made 80 appearances for Rovers after joining from Sunderland two years ago.
His first season was cut short after suffering a huge gash on his shin before the Covid-19 pandemic curtailed the campaign.
He recovered to be one of Rovers’ top performers last term, showing tremendous versatility by playing in a variety of roles in midfield and netting seven goals.
Though he had expressed a wish to find a Championship club, James informed Rovers he would not sign for another League One club and would stay at the Keepmoat if the interest did not arise. During last season he relocated from his native north west to Doncaster.
Confirming his departure, a statement from Rovers read: “Everyone at the club would like to wish Reece the very best with his future career.”