The Gunners' Premier League season began with a miserable 3-1 home loss to Aston Villa at the Emirates on Saturday and boss Arsene Wenger has been criticised for not strengthening his squad this summer.
But Wenger has made it clear he does expect to make signings before the transfer window closes at the end of the month and Cabaye has now emerged as a target.
However, Newcastle are not thought to have paid much less than £10m for Cabaye themselves and have turned down Arsenal's offer.
The 27-year-old Cabaye has been linked with several clubs over the summer, notably French champions Paris Saint Germain.
And Arsenal have now entered the running for the France international, who joined Newcastle from Lille in the summer of 2011 and helped the Magpies to finish fifth in the Premier League that season.
Newcastle did not fare so well last term, perhaps in part because Cabaye, who has been capped 23 times by France, had to miss some time due to injury.
This is Arsenal's second unsuccessful foray into the transfer market this summer following their failure to acquire Liverpool forward Luis Suarez after lodging a well-publicised £40m + £1 bid.
And the pressure on Wenger to spend has increased following the news that the Arsenal Supporters Trust have released a statement saying it would be 'inappropriate' to offer the long-serving boss a new contract.
Meanwhile, PSG boss Laurent Blanc remained coy when asked about his interest in playmaker Cabaye, but did say that he "loves" the player.
Premier League rivals Manchester United and Tottenham Hotspur as well as Blanc's PSG have also been linked with a move for the former Lille midfielder before September's transfer deadline.
When quizzed about Cabaye by reporters following his side's 1-1 draw at home to Ajaccio on Sunday, Blanc appeared reluctant to confirm or deny his interest.
"We're still interested in buying more players," said the 47-year-old. "Cabaye? There are a lot of things that you [journalists] write in the press.
"At the moment I can only say that I love this player."