Crystal Palace have reached agreement in principle with Paris Saint-Germain over the purchase of Yohan Cabaye, with the France international expected to confirm next week whether he will return to the Premier League with the south London club.

Talks between the Palace co-chairman Steve Parish and PSG have been positive, with the fee involved to secure Cabaye £12.5m including add-ons and, therefore, constitute a club record. The 29-year-old worked with Alan Pardew during a successful stint at Newcastle and is attracted to the idea of joining his former manager, though it is understood he is also seeking evidence of Palace’s ambition, particularly in the transfer market.

The midfielder would be the club’s first addition during the summer window, with Palace’s moves into the market to date limited to securing Brede Hangeland on a one-year deal and tying down James McArthur to new terms.

They have expressed interest in a number of players, from Chelsea’s Loïc Rémy to Matt Phillips and Charlie Austin at Queens Park Rangers, but Parish admitted over the weekend that securing personnel aimed at consolidating last season’s 10th-place finish – the joint second-highest in the club’s history – represented uncharted territory for the owners.

“Yohan Cabaye is definitely one we’d like to do,” the co-chairman told TalkSport. “It would be a massive thing for the club because he’s a seasoned international. But getting the top players is difficult. It’s a difficult transfer market right now. It’s a bit blocked up, no one really wants to go first, no one wants to set the valuation. We’ve finished 10th, we’ve done well but we want to do better than that. For us to get into the top 10 in the Premier League, we’ve got to be bringing in people that are top-10 Premier League players. It’s not easy, because everyone wants those players.”

Cabaye flourished under Pardew on Tyneside after a move from Lille in 2011 before signing for PSG for £19m in January 2014. He started only 13 Ligue 1 games last season and grew concerned over a lack of first-team opportunities, which will affect his chances of making Didier Deschamps’ national squad for next summer’s European Championship in his homeland.

Those frustrations were made clear to the PSG manager, Laurent Blanc, and the club have indicated a willingness to sel, not least because Uefa have relaxed their financial fair play restrictions on the Parc des Princes club, allowing them to re-enter the market more proactively to add to their ranks.

West Ham United, who can offer Europa League football, have also checked on Cabaye’s availability and could yet declare an interest. Roma, too, are considering a move for him. The Italian club, who will play in the Champions League, are overseen by another of the Frenchman’s former managers, Rudi Garcia, who was formerly at Lille.

McArthur, a £6m signing from Wigan last summer, signed a three-year deal at Palace on Tuesday after an impressive first season. “I’m delighted,” said the Scotland international. “I had a fantastic time last year and I think the club’s going in a great direction. Everyone’s positive around the place and I’m really looking forward to the coming years. I think there was a bit of general interest [in me] but Palace is where I want to be, I’m happy and that’s the main thing in football. The club has got the potential to go places.”