The Magpies decided to sell the France international after PSG came in with an improved offer on Monday, which is believed to be close to the Premier League side's £20m valuation.
And Cabaye has reportedly made his way to Paris for a medical ahead of signing a three-and-a-half-year deal, although Al Khelaifi cautioned that the transfer should not be seen as certain to go through.
"It is not done," he said. "There are discussions, that's true, but it is not finished."
Asked what attributes Cabaye brought to the table, the PSG president told L'Equipe: "One, he is a very good player and very interesting to us.
"Two - I have never met him but I was told he is a nice guy.
"Three - he is French and it is very important for us at PSG to recruit French players to bring into the French championship."
It has been reported in France that PSG stars Zlatan Ibrahimovic and Thiago Silva have expressed doubts about the merit of the signing.
But Al Khelaifi added: "The players are there to play.
"There are major players like captain Thiago Silva or Ibra, who may have their feelings about this or that player, but they are completely in line with the club's point of view.
"Of course, they want the best players in the world to come to Paris. But Cabaye is a very good player, no doubt about it."
It could be a case of one out and one in for Newcastle, as Luuk De Jong is due to undergo a medical at St James' Park, according to his club Borussia Monchengladbach.
The 23-year-old striker has not started a game for Gladbach since April last year and has fallen way down the pecking order at Borussia Park.
Newcastle tried to sign De Jong from Twente in 2012, but it was the Bundesliga club who won the battle for his signature when they paid over £12million.
Newcastle have keep tabs on De Jong's situation and opened talks with Gladbach in December - and now a deal has finally been agreed.