The Gunners are expected to lodge a second bid for the Frenchman.
Joe Kinnear has warned Arsenal that it will take a bid of £20 million for Newcastle to sell Yohan Cabaye this summer.
The Gunners have already had a £10m offer rejected for the French international midfielder but manager Arsene Wenger is expected to make another approach as he steps up his efforts to bring fresh faces to the Emirates Stadium before the transfer deadline on September 2.
Cabaye has already informed Magpies boss Alan Pardew of his wish to leave St James’ Park and missed their first two Premier League games against Manchester City and West Ham amid the north London club’s interest and reports that he refused to play for the club.
Pardew called for the situation to be quickly resolved one way or another and director of football Kinnear revealed that Arsenal are aware of what it will take to persuade Newcastle into cashing in on the 27-year-old so close to the transfer deadline.
“We’ve told Arsenal our terms, the ball is in their court.” Kinnear informed The Mirror.
It’s thought Cabaye’s relationship with the north East club has deteriorated considerably in the last week and that Pardew is resigned to losing his midfield creator-in-chief.