The pair locked horns in the house in last night's show in a rather nasty fight.
Austin slammed: “You f**king bell-end, d**k-head, d**k-cheese, f**king c**t, gutter-rat, twat.”
James mocked: “Oooh let’s all feel sorry for Austin cos he’s going through a much harder time than us.”
James then told him it was about time someone “stood up” to Austin’s “boring, petty, s**ty behaviour, little c**t, trying to come up against me you little p***k
The ex Strictly pro dancer also added: "Listen, you don't want me to start, or I'll hurt you.
"If you want to play with the rough boys, you're going to get yourself hurt. You're used to playing with little soft boys. Don't play with real boys."
According to DigitalSpy, some viewers have taken James' comments as a "homophobic slur".
One viewer wrote on Twitter: "Soooo, we not going to make an uproar of James J's indirect homophobic comment? GET JAMES J OUT! GET JAMES J OUT! GET JAMES J OUT!! #CBB"
A spokesperson for Celebrity Big Brother told the website: "Big Brother does not tolerate unacceptable language in the Big Brother House.
"Big Brother intervenes where necessary to remind housemates of this."
Celebrity Big Brother 2017 continues nightly on Channel 5.