The Magpies boss says that he understands the France international's frustrations, stating that he wants to be managing in European competition as well
Cabaye has made noises about wanting to play in the Champions League, leading to speculation regarding his future at St James' Park.
But Pardew insists the French midfielder can achieve his goals with the club and that Newcastle's progress would take a step backwards without him.
"Yohan wants to play in the Champions League and who wouldn't," said Pardew. "I want that. Ask me that question. Yes I do, and we want to build to do that here.
"We need players like Yohan Cabaye to get us there. For him to express that ambition is no problem."
Defender Fabricio Coloccini is another Newcastle player who reportedly sees his future away from the club, but Pardew played down quotes linking him with a move back to Argentina.
"On Fabricio Coloccini, the pangs of home were pulling on him last season," he continued. "What he said this week is not a big deal. We just want to keep him playing well here.
"Both of them have been outstanding players for this football club, and we need outstanding players if we are to make an impact at the top of the division."
Newcastle currently sit eighth in the Premier League, just two points adrift of the top four.