Arsenal are chasing the signature of Cabaye before the close of the transfer window and have already seen one bid rejected for the midfielder.
Arsene Wenger is keen to lure Cabaye to the Emirates and is expected to come back with a new improved bid for the French international.
Cabaye has missed Newcastle's opening two Premier League against Manchester City and West Ham in the wake of Arsenal's failed first bid for his services.
Newcastle boss Alan Pardew has called for the issue to be resolved one way or another and Kinnear admits Arsenal know what Newcastle want for Cabaye.
"We've told Arsenal our terms," Kinnear told the Daily Mirror. "The ball is in their court."