The star explained that the group are always working on ideas, but have yet to decide if they will record the tracks for a new studio album after their London 2012 Hyde Park gig on Sunday (August 12).
"Ideas are coming up in sound-checks, and they did in the studio when we recorded our new single," James told the Daily Star. "Blur always were prolific. We never had a problem writing music."
He added: "We're all loving the shows, but not knowing what our future is makes it all the more special.
"I can't believe how insane it's been, audiences are going crackers. Every time we leave it for a bit, Blur seem to come back even bigger."
James also denied producer William Orbit's claims that Blur want to record a new studio album, but frontman Damon Albarn allegedly scrapped the plans.
"The focus has only ever been on Hyde Park," James said. "I'm not sure Blur would have ever played again if we hadn't had the honour to close the Olympics.
"We wanted to write a new song for the occasion, and we all enjoyed doing 'Under The Westway' so much we did another song, 'The Puritan', for the B-side. We're cool with William, it's fine between us."
Blur will headline Sunday's BT London Live at Hyde Park, which will coincide with the final day of the Olympic Games.
Watch the music video for Blur's 'Under The Westway' below: