Cabaye's future at St James' Park has been under intense speculation during the January transfer window, with the Ligue 1 leaders said to be long-time admirers of the midfielder.
PSG reportedly had a £14m bid for the player turned down yesterday, and the latest offer is "significantly higher" than that, according to Sky Sports News.
The Magpies are believed to have agreed a fee with PSG for the 28-year-old, who will now undergo a medical with the French champions.
Cabaye joined Newcastle from Lille for an undisclosed fee in 2011 and has since made 93 appearances for the club, scoring 18 goals in the process.
Seven of those goals have come in 20 games in all competitions so far this season as the Frenchman has helped Newcastle to eighth in the Premier League table.