The monster – then aged ten – can be heard breaking down as he is grilled by a detective after being arrested over the gruesome crime.
Venables shocked the nation in 1993 when he abducted and mutilated little James along with pal Robert Thompson in Bootle, Merseyside.
In the haunting police interview, the murderer tells the officer and his mum he had been at the Bootle Strand shopping centre on the day James was killed, adding: "But we never got a kid mum. We never, we never got a kid."
The clip – played at his trial in 1993 – then hears the officer referring to a conversation he had with his mum. He says: "What was it you told us?"
Sobbing, Venables replies: "That I killed James."
Both Venables and Thompson were just ten years old when they became the country’s youngest murderers in 250 years.
Little James was led away by the depraved duo while his mother was in a butcher's shop at the busy shopping centre.
The pair took James to a railway line and tortured, beat and sexually assaulted him.
They poured modelling paint into his eyes, stoned him and clubbed him with bricks, before leaving him on the railway line to be hit by a train.
After killing the tot they left his body near the tracks where it was discovered two days later.
In Channel 5's James Bulger: The New Revelations, Venables admits he was so haunted after slaughtering the youngster he thought he had 'baby smell' on his clothes.
He would immediately take off what he was wearing after each day of the 1993 trial, the show claims.
Venables is reported to have said: “I can smell James like a baby smell" and began to imagine his victim growing inside him.
Thompson, now 36, also said he is a “better person” thanks to his years in prison — but apologised for murdering the two-year-old.
In statements that convinced the Parole Board to free him in 2001, he said: “I do feel aware I am now a better person and have had a better life and a better education than if I had not committed the murder.
“There is obviously an irony to this but it is part of my remorseful feelings as well.
“I, personally, wish Mr and Mrs Bulger and their families to know that I am desperately sorry for what I did, and aware of the enormity of what I did.”
A picture taken from CCTV footage shows the tot being taken by the hand in what would become one of the defining images of the shocking case.
The killers walked James for two and half miles and were spotted by 38 people – some of whom challenged the pair.
Thompson also reveals harrowing details of the day James was killed in his parole statement – claiming the CCTV image makes him "feel shame and revulsion".
He also appears to try and pin the murder on Venables – claiming he "became aware" at some point his pal had a child with him.
But Thompson admits "joining the attack" on James – saying he threw paint in his face and helped Venables lift a metal bar to throw at the youngster.
James's dad Ralph has told The Mirror the statements are "false words" as he revealed he will "never accept either of these two is sorry".
He also told The Daily Mail he feels the pair have been "rewarded not punished" for the horrific attack.
Thompson has not re-offended since being released on licence when he was 18 years old.
In February of this year Venables was jailed for 40 months after he admits to possessing more than 1,000 indecent images of children.
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