Cabye has impressed since making the move to St James' Park in 2011 from Lille for £4.8 million, and has been linked with a move to one of the Premier League's top four for some time.
Manchester United, whose perennial search for a creative midfielder has seen them linked with a host of players, were reportedly interested in landing the Frenchman at the start of the season, while Cabaye himself claimed Tottenham tried to make a move for him last summer.
Toon boss Alan Pardew has previously admitted he would be powerless to stop a bigger club poaching Newcastle's best players in the past - and said that if Manchester United want Cabaye to be the "next Paul Scholes" it would cost them "a shedload of money".
However according to the Express, Arsenal are firmly in the hunt for his signature as they look to overhaul their squad in the summer with a £70 million transfer budget.
Reports emerged in the aftermath of Arsenal's 3-1 Champions League defeat against Bayern Munich last week that boss Arsene Wenger will be handed a transfer war chest to revamp his squad in order to end their trophy-less run which looks set to extend into an 8th season.
Cup defeats against Blackburn and Bradford, and the fact they are mired in a battle for 4th place rather than the title, has heaped the pressure on Wenger - but the Arsenal boss has reportedly been told his job is safe and that he will be backed in the summer window.
According to the Express, Cabaye, who will cost around £15 million, could be central to those plans, while a new goalkeeper and striker also appear to be on the Gunners wish list.
Cabaye, who is contracted at Newcastle until 2016, got on the scoresheet yesterday as Alan Pardew's side brushed aside Southampton 4-2.