The Gunners, whose sole signing of the summer remains free transfer Yaya Sanogo, are under pressure to reinforce their squad after the weekend defeat to Aston Villa.
Cabaye, 27, joined Newcastle from Lille for £4 million two years ago and enjoyed an excellent debut campaign but failed to sustain that form in 2012-13.
The Tourcoing-born international has scored 11 goals for Newcastle and started three of France's four matches at the 2012 European Championship.
Arsenal have also reportedly made enquiries about Cabaye's France teammates Paul Pogba and Geoffrey Kondogbia.
Pogba excelled at Juventus last season after rejecting the offer of a new contract from Manchester United while Sevilla's Kondgobia made his France debut last week.
Newcastle travel to Manchester City tonight for their season opener, determined to improve on their 16th-place finish last season.
The Magpies finished fifth in Alan Pardew's first full campaign - Cabaye's first with the club.