PSG boss Laurent Blanc has never hidden his admiration for Cabaye, who he handed a debut to whilst coach of the France national side.
Earlier this week, Blanc confirmed PSG's desire to land a midfielder this month, and he highlighted Cabaye and Roma's Miralem Pjanic as his preferred options.
PSG, who enquired about Cabaye earlier this month, have now cemented their interest by making a firm offer for the 28-year-old.
However, their £14million offer is way short of Newcastle's valuation which is over £20million.
Newcastle have insisted that they are not looking to sell any players this month - although they have never denied that every player has a price.
Cabaye has two years left on his current deal at St James' Park, although under FIFA rules he could in theory buy out the remainder of his own contract this summer.
Monaco cut Paris St Germain's lead at the top of Ligue 1 to just three points on Sunday night as they claimed derby honours against Marseille at the Stade Louis II.
Claudio Ranieri's side may have to cope without injured Colombian striker Radamel Falcao for the rest of the season due to his knee injury, but even in his absence they had enough firepower to finish off their off-form visitors.
Monaco won 2-0, with Valere Germain netting a classy opener after a burst from the left flank in the 41st minute and Emmanuel Riviere adding the second goal after 57 minutes.