The deal has gone down as a record signing for the club, with the Frenchman being secured for £10 million, the move will be finalised subject to international clearance.
Cabaye has already shown he has the ability to play in the Premier League after spending three seasons at Newcastle United from 2011-2014, scoring 18 times in 93 appearance during the time under now Palace manager Alan Pardew, before being sold to PSG for £20 million in January 2014.
He also brings international experience to the club, having recorded 34 caps for his country and being selected into the squads for the 2012 Euro and 2014 World Cup, scoring three times in those 34 matches for France.