Arsenal pipped by Paris Saint-Germain in race to sign Newcastle midfielder Moussa Sissoko

Paris Saint-Germain have stepped up their interest in signing Newcastle midfielder Moussa Sissoko who is also being courted by Arsenal, according to the Sunday People.

The Ligue One Cup team are willing to send Yohan Cabaye back to the Magpies as part of the deal, whom they bought in January last season. Cabaye has failed to carve a starting place for himself in the squad and has found himself sitting on the bench for a major part of the season.

Sissoko is being valued at £20m by Newcastle who has been a revelation this season, tearing opposition midfields apart through his powerful runs and intelligent interceptions in the middle of the park.

PSG are willing to alleviate the hit in wages for Cabaye by offering him a part of the lumpsum they were willing to spend for Sissoko in a straight cash deal.

Arsene Wenger will be disappointed at the turn of events, who had earmarked Sissoko as the man to lead the Gunners' midfield and add some much needed physicality to protect his creative players.

Sissoko would be a replacement for Mathieu Flamini, whose contract expires in the summer.

However, with PSG emboldening their offer by providing Cabaye, Wenger has to look at other options to strengthen their midfield, which is a priority given how the season has panned out.

The Gunners are currently sixth in the league, with a plethora of injuries in the middle of the park. Aaron Ramsey, Mesut Ozil, Flamini, Mikel Arteta and Jack Wilshere are all out, with the Gunners having to field a makeshift duo of Francis Coquelin and Calum Chambers in the base of midfield against Southampton.

Arsenal are currently three points behind a top four spot and 13 points behind leaders Chelsea, with their title hopes fading for yet another season.