Palace are said to have beaten London rivals West Ham to the Frenchman's signature in what is surely one of the coups of the summer transfer window.
Could missing out on Cabaye be a blessing in disguise?
The Hammers' interest appeared to be genuine.
But missing out on Cabaye, despite his utter class, could actually be the best thing that happens to Slaven Bilic's side this season.
The Hammers have already signed goalkeeper Darren Randolph and midfielders Dimitri Payet and Pedro Obiang to add to left back Stephen Hendrie - who was signed in January but only officially joined the club on July 1st.
A new centre back is due in east London for a medical on Thursday as revealed by co-owner David Sullivan's son Jack on Twitter and deals for last season's loan stars Alex Song and Carl Jenkinson are also in the offing, as per the Daily Mirror.
French international teammates too similar?
But it is the £10.7 million signing of attacking midfielder Payet which is crucial in this case given the similarities between the former Marseille man and his French international teammate Cabaye.
By signing Payet, the Hammers sent a message out to the rest of the Premier League and Europe this summer.
A player blessed with great skill who is not afraid to take people on and go for goal, he comfortably created more chances for his team than any other player in Europe's top five leagues last season with 135 - 40 more than the likes of Barcelona's Lionel Messi.
The France international had the second highest number of assists last season behind Messi and the season before finished top of that same table.
Payet a more devastating player
But would West Ham have got the best out of him if they had signed Cabaye?
Like a composer in the middle of the park, an in-form Cabaye controls the game for his teams and weighs in with his fair share of goals and assists.
However, his presence would almost certainly have marginalised Payet, who has been deadly for Marseille since being moved to a more central no.10 role by maverick manager Marcelo Bielsa.
Side by side Payet's stats are head and shoulders above Cabaye.
And while the diminutive star may have the advantage of knowing his way around the Premier League, you can't help but feel it would have been £13 million better spent elsewhere for the Hammers.