Newcastle have rejected an opening £10 million offer for Cabaye, who was left out of the squad for defeat at Manchester City last night.
The Mirror says Arsenal are set to go back with an improved offer after having their bid was rejected by Newcastle but it is also believed Cabaye would prefer a move to Paris Saint-Germain.
Arsenal's transfer fixer Dick Law, who has yet to land any of their big targets, rang Mike Ashley offering £10.2m and the Newcastle owner quipped: "Which bit of him do you want to buy?"
The joke went over Law's head as he replied: "No, we want to buy all of him. The player wants to play for Arsenal."
Ashley claimed they would only start talking at £20m and hit back: "He may want to play for Arsenal but he's got three years left on his contract here."
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