The 34-year-old singer, who is a quarter of boyband Blue, said that when the tabloid newspaper printed the article in 2009, he "couldn't even be in the UK".
Speaking candidly on ITV2's The Big Reunion tonight (March 21), James opened up about his past struggles with coming to terms with his sexuality following a religious upbringing.
"Being brought up as a strict Catholic, the whole gay thing in my head was bad and wrong," he said during the programme. "And it wasn't until I was in the band, being around other gay guys, understanding that actually you can be gay. It's alright to like other guys."
The 'All Rise' singer also spoke about having "a secret undercover relationship" with one of Blue's male backing dancers. James said: "I actually really liked him and I couldn't tell anybody.
"We would meet up in secret places; hotels or wherever. I used to ring him up paranoid, 'Have you told anybody? Have you told anybody?' and he'd be like, 'I'm not going to tell anybody, I promise you'."
However, James admitted that during this time he was also having sexual relationships with women - something which led to his lover's heart being broken.
"I broke his heart to the point where he couldn't be with me in that way any more and ended it," revealed James, who added that the man was in love with him. "And it was at that moment when he was gone out of my life, I realised about myself."
Speaking about the pressures of being in a male group with numerous female fans alongside bandmates Antony Costa, Lee Ryan and Simon Webbe, James said: "I wanted to still be kind of known as 'Duncan James from Blue, the heartthrob'. The ladies' man. If anybody ever used to say anything about me - 'I think he's gay' - I would get this panic inside me."
After fleeing the country when the story broke, James expressed surprise at how few people were shocked. Of the story breaking in the press, he added: "Actually, it was a really minor thing."
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