Cabaye, who was withdrawn from the team that lost 4-0 to Manchester City in the Premier League on Monday, has been looking to quit Newcastle United for months and he is keen on the move to the Emirates now Arsenal have firmed up their interest.
Paris St-Germain have also been long-term admirers and have admitted as much repeatedly in public, but they are yet to make a bid.
Newcastle hope that changes and a bidding war with Arsenal begins.
Cabaye’s form dropped badly in his second season at St James’ Park as Newcastle became embroiled in a relegation battle and the club are likely to accept the best option for them is to make sure their £20 million valuation is met.
Cabaye told manager Alan Pardew he wants to leave, having been forced to stay 12 months ago when Newcastle refused to sell him to Tottenham Hotspur.
Newcastle, though, feel they are in a strong negotiating position as Cabaye has three years left on his contract, but they are also aware they will need to sign a replacement if he goes.
Newcastle are likely to insist he puts in a written transfer request so he loses his loyalty bonus.
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