Newcastle and Paris St Germain have reached an agreement in principle over the transfer of midfielder Yohan Cabaye to the Ligue 1 club.

Press Association Sport understands the French side, who had a £14million bid rejected on Sunday, have made an improved offer and will now seek to tie up a deal subject to personal terms and a medical.

The news will come as a blow, if not a surprise, to manager Alan Pardew, who admitted on Monday afternoon he was not confident of retaining the services of the 28-year-old France international after PSG formalised their interest.