Speculation previously surfaced around Cabaye in the summer, when he missed the Magpies' first three games of the season following a bid from Arsenal.
Blanc has made no secret of his admiration for the 28-year-old, and reports suggest PSG are preparing to double the Gunners' offer with a £20million-plus fee.
At present, Newcastle insist no bid has been received.
But with Cabaye in form, with five goals in his last seven appearances for Newcastle, and available to play in the Champions League knockout stages, he is an attractive proposition to Blanc.
The former France manager is in need of a midfielder after losing Adrien Rabiot to injury.
Speaking to Canal+ after PSG thrashed Nantes 5-0 on Sunday to retain their five-point lead at the top of the table, Blanc said: "It would be good to recruit a player in the heart of the game, to have an extra player in midfield.
"We need a player who has the same mentality as the others when they are playing or on the bench. He must love to play.
"He must be technically good and be tough, and whether this player comes or does not come, there will be competition in all positions.
"I've been saying for a month and a half - and the injury to Adrien makes it more urgent - that we need an extra player in midfield."
Asked specifically about Cabaye, Blanc added: "I ask myself. I know the man. He has that character, but there are others.
"We are very happy with this team, but with all the competitions in which we are engaged we must be aware there will be issues, as we have seen with Adrien Rabiot."
From his perspective, Cabaye sees no reason why he could not be playing Champions League football with Newcastle next season.
With United seven points adrift of the all-important fourth-place currently occupied by Liverpool, Cabaye said: "We are in good shape."
Speaking to reporters, he added: "Champions League is a bigger level, but we have the capacity to just stay next to the big teams.
"If we are still in a similar position (to challenge for the top four) by the end of the season, why not?"
Insisting he is happy at Newcastle, Cabaye added: "For me the most important thing, as I said, is to do my best for the team.
"If the manager or the staff are happy with my performance and the fans who are supporting me are happy, I am happy.
"My mentality hasn't changed. Even after what happened in the summer - and I will do my best for the team every day."