Alan Pardew’s side have told the Gunners anything less will be flat-out rejected as the Magpies look to keep hold of their talented French international.
Arsene Wenger has been heavily linked with a move for Cabaye as he looks to strengthen his squad for a Premier League title challenge over the second half of the season.
Cabaye can leave Newcastle if Arsenal match the club’s valuation, although with Paris St Germain waiting in the wings, the Gunners may have to act early in the window.
Arsenal tried to sign Cabaye over the summer, but their initial offer – believed to be around the £10m mark – was rejected by Newcastle.
The Frenchman reportedly wanted the opportunity to discuss the move with Arsenal, and was left out of the squad to face Manchester City in the club’s first game of the campaign.
The 27-year-old was signed from Lille for just £4m, so the chance to make £18m profit on the transfer fee is tempting for the Toon Army.
Whether Wenger will go that high is another matter, although the Arsenal board are keen to back their manager in the transfer market following the £42.5m deadline-day acquisition of Mesut Ozil.