Cabaye has been a vital part of Newcastle's surge this season, pushing the Magpies to 7th place in the Premier League alongside more illustrous clubs like Liverpool and Arsenal.
Ahead of their clash against defending champions Manchester United at the Sports Direct Arena, Cabaye believes that their opponents still have the edge in the title race between the two Manchester sides.
He said on the Daily Mirror: "I think it will be between the two Manchester clubs. United are more like a team, because they have been together for a long time. The players have gelled very well together.
"City look less like a team, more like a group of individuals. But [then] they haven't been together for as long. If City gel, they will be a very good team. United know what they have to do, and they have a good manager."
The former Lille midfielder is also braced for a backlash against the side that fell to a shock 3-2 loss against Blackburn on New Years Eve with the return of Wayne Rooney to the United side.
Cabaye continued: "Before I came to England, I was always told that Christmas was the most important time of the season.
"Unfortunately for United, they've got a crop of injuries at this time. The manager had to put out a weird team at the weekend [when they lost at home to lowly Blackburn] because of that.
"But we know they rarely lose two in a row and we will be ready for a backlash. Especially Rooney. He is a huge player, with a lot of quality. But it is not just him in the team - there will be lots of players we have to watch out for."