James and Austin, both 27, have been pretty much inseparable since they entered the Celebrity Big Brother house.
Although Austin is married, he has admitted to liking former Apprentice star James more than he should.
But last night James made it clear that the two of them would only ever be friends.
He said: "For me I don't look at someone and think… if they're gay, lesbian or whatever. It doesn't matter. If you like them as a person… f*** that. Do you know what I mean?
"I know I'm completely straight. I've never ever been interested in men. I've never been bothered about it. I like women so I'm comfortable. If you're not sure about yourself then that is where you're going to have problems."
But, keen to show he wasn't having a go, James added: "I think we're going to be friends for a long time."
It's not the first time James has had to be clear about his sexuality during the show.
When Jenna Jameson and Farrah Abraham quizzed James on his friendship with Austin, he fumed: "He has not tried to come on to me once… the minute he tries to f**king touch me I'll be in bed with Bobby Davro."