Cabaye was not even on the bench for Newcastle's clash at the Etihad Stadium despite being fit.
"I can confirm we've had a bid for Yohan Cabaye we don't think is acceptable. I have to pick a team for tonight's game," Pardew told Sky Sports in a pre-match interview.
"I've picked a team which I think can get a result here. People can debate the rights and wrongs of it."
Earlier on it was reported that Newcastle had rejected a bid worth a reported £12m for Cabaye from Arsenal, who also want Paul Pogba and Michu.
Arsenal are desperate to make a big signing, having begun the season with a 3-1 home defeat to Aston Villa at a mutinous Emirates Stadium.
Newcastle want £20 million for Cabaye, and the Daily Telegraph reports they described Arsenal's bid as "derisory".
The Frenchman, who is believed to be keen on a move, is also being tracked by big-spending Ligue 1 clubs Paris Saint-Germain and Monaco.
Arsene Wenger has simultaneously been sounding out Juve about the availability of Cabaye's international colleague Pogba, with the Gunners believed to be readying a £20 million offer.
While Cabaye's future has been the subject of continued speculation this summer, the offer for Pogba was less expected.
Pogba, 20, joined Serie A champions Juventus last summer after failing to secure a first-team spot at Manchester United - and he went on to score five goals in 27 league appearances, winning the Serie A title and earning a call-up to the France national team.
Meanwhile L'Equipe claims Wenger also wants Swansea City striker Michu - however the Spaniard would command a fee of around £25m - over 10 times what Michael Laudrup paid for him a year ago.
The defeat against Aston Villa prompted an angry reaction from Arsenal supporters, who made it clear they were unimpressed with Wenger's failure to land his principal targets during pre-season.
Yaya Sanogo remains the only signing this summer after failed attempts to buy Luis Suarez, Gonzalo Higuain, Luiz Gustavo and Bernard.
Wenger was in defiant mood in the aftermath of that defeat, though.
"Could we have won the game with the players we had on the pitch? I say yes," said Wenger. "And if we don't spend the money it's because we don't find the players.
"We are there to spend money. People say: 'Buy players, buy players, buy players'. But who? We analyse every single player in the world and work 24 hours a day for that.
"We are serious about it. Until we buy players we have to win football games."