Newcastle United are bracing themselves for a bid for Yohan Cabaye from Paris Saint-Germain and must decide whether to sell for around £20m or hold the France midfielder to his contract.

Laurent Blanc, the new PSG coach, holds Cabaye in high regard and sources in France suggest the PSG are preparing an offer which could be submitted as early as Monday. Although Monaco have also been tracking Cabaye, he forged a strong relationship with Blanc when the latter was France coach and offered the former Lille midfielder an important role in the national side.

Cabaye has three years remaining on his deal at St James' Park and is said to be a favourite of Mike Ashley, Newcastle's owner, but cashing in on the 27-year-old would help fund manager Alan Pardew's double £26m bid for the St Etienne striker Pierre-Emerick Aubameyang and the central defender Kurt Zouma. Moreover, there would also be cash left over to purchase other targets, including the Aston Villa forward Darren Bent.

After arriving on Tyneside from Lille for a fee believed to under £4m two summers ago, Cabaye excelled during his first season, helping Pardew's team to fifth place in the Premier League, while emerging as a powerful dressing room influence. Injuries, fatigue and loss of form saw a playmaker watched by Manchester United and Arsenal in recent months frequently appear a shadow of his former self last season.

With Cabaye having no "get out" clause in the five-year agreement he signed in 2011, Ashley could opt to see if PSG or Monaco are willing to pay £25m or even £30m for a player Joe Kinnear, Newcastle's new director of football, has already pledged will definitely "be staying". Yet as Andy Carroll's £35m move to Liverpool proved, every Newcastle player has his price, and PSG's Qatari owners certainly possess the funds to back Blanc.