The 20 year old forward, a Wales international, has made more than 20 appearances for the Bulls over the last three seasons.
James' recruitment is the first step in coach Matt Calland's promised restructuring of Fax's front row, with Kiwi Frank Watene the only one of the club's incumbent big men who currently has a deal stretching into 2009.
"We have always recognised it was an area we need to strengthen and signing Matt is the first step in doing that," said Calland.
"I have been chasing him for about a year now and have been in regular with Steve McNamara over at Bradford about him.
"He's played quite a bit of Super League for Bradford and they feel that this is the right time in his development for him to come out on loan and play regular first team football.
"He's a big, aggressive player who can really whack in defence and I am sure he will be very good for us."
James is following the same path as another Bulls front rower, Craig Kopczak, who made a massive impression during a five week stint with Fax in the spring.
Kopczak has since become a top grade regular at Odsal and recently penned a new two year deal.
"I don't want to label people, but Matt is probably in a similar position to the one Craig was when he came to us," said Calland.
"Hopefully, everyone will benefit just as much from this arrangement as they did that one."