Newcastle United decided to cash in on Yohan Cabaye after he indicated his wish to leave for Champions League football.

Press Association Sport understands the Magpies and Paris St Germain reached an agreement in principal for the transfer of the 28-year-old France international on Monday night following whirlwind negotiations.

PSG, who had a £14m bid rejected on Sunday, made a significantly improved offer – which will remain undisclosed by both parties – to finally get their man.

Newcastle owner Mike Ashley, who had valued the midfielder at around £20m, ultimately decided to do business with Cabaye desperate to play on Europe’s biggest stage once again after sampling Champions League football with former club Lille.

The Frenchman, who was preparing for the Magpies’ Premier League trip to Norwich last night when the deal was struck, will now travel to his native country to undergo a medical.

His seemingly inevitable departure will come as a huge blow to manager Alan Pardew, who despite voicing his hope that the player would stay on Tyneside, had admitted earlier on Monday that he was not confident of him doing so.

Pardew said: “Listen, we are a club that unfortunately at the minute, is not in a Champions League position, so therefore players can turn around to us and say they want Champions League, as Suarez did with Liverpool.

“He stayed, Suarez, and they have got themselves in a position for the Champions league, but they wouldn’t be there without him.”

Cabaye’s loss would not go down well on Tyneside among fans who crave a return to the big time, and saw him as a central character in that quest.

However, for Ashley, it would represent good business with the player having cost the club just £4.3 million when he moved from Lille during the summer of 2012.