Newcastle have told Arsenal they must cough up £20million for Yohan Cabaye with three-quarters of the money up front.
Toon director of football Joe Kinnear has taken over negotiations with the Gunners after the French playmaker informed Newcastle boss Alan Pardew he wants to leave.
Cabaye sat out Saturday's goalless draw with West Ham because he was not in the right frame of mind to play, after the Geordies rejected Arsenal's £10m bid .
Kinnear said: "We've told Arsenal our terms, the ball is in their court."
Arsenal also have Real Madrid pair Karim Benzema and Mesut Ozil on their radar and it was claimed in Spain they have offered £26m for their team-mate Angel di Maria.