The Magpies are yet to make a meaningful move in the transfer market this summer.
Indeed, he said: "I’m not surprised to hear Yohan Cabaye is saying he will only return to Newcastle United if they start bringing in some good new players. He’s got a point.
"Newcastle have got to start showing some ambition. That way they will attract ambitious players."
Cabaye’s representatives are believed to have contacted the Magpies about the Frenchman’s return to St James only for the player to voice doubts about the ambition of the club, according to the Chronicle.
Lee went on to cast doubts over how attractive a proposition Newcastle is to top players now, based on their lack of investment in the squad.
"He can virtually pick which club he joins. And why would he choose Newcastle United?
"When a player is thinking of joining a club he looks at the squad he will be working with and that is why Newcastle need to start signing top quality players now," he added.
The former Newcastle man is echoing the growing sentiment of fans in their worries over the club’s priorities. Promises of investment were made at the end of last season and those promises have not yet been honoured.
It is still early in the transfer window, however, and time remains for Steve McClaren to get his business done.
As Lee points out, though, the issue in attracting top players is the need to present an interesting project when negotiating and, at the moment, the Newcastle project has no real direction.
Supporters, then, will no doubt hope the Magpies hierarchy will get their chequebooks out soon...