Palace are widely reported to have come to an agreement with PSG that will see them pay £10million up front for Cabaye, with a further £2.5million potentially due in various add-ons.
The 29-year-old was also a target for West Ham, Roma and Atletico Madrid but has apparently agreed to move to Selhurst Park on a four-year contract after being assured he would not be the Eagles’ only major signing of the summer. Reports suggest he will be paid £100,000 per week.
The south London club are also hoping to sign QPR striker Charlie Austin and are keen on Hull City defender James Chester.
Sky Bet have now suspended betting on Cabaye joining Palace following heavy backing on Wednesday.
Sky Bet’s Simon Thompson said: “After offering odds of 12/1 in April that Cabaye would sign for Crystal Palace in the current transfer window, the odds have gradually tumbled.
“He has been odds-on to re-unite with Alan Pardew since June and, after a number of large bets, we have now been forced to suspend betting.”