The France midfielder, 28, has signed a three-and-a-half-year contract with the Ligue 1 giants.
"I am very, very happy to return to France," said Cabaye, who made 79 Premier League appearances for Newcastle, scoring 17 goals.
"The offer from Paris St Germain was hard to refuse. I want to win titles and PSG offer me that, so it is an ideal club. I did not hesitate.
"I am proud to have a chance to be a part of this ambitious project, to have the opportunity to win titles and play in the Champions League.
"The priority for me was the opportunity to win titles, quite simply. That was the biggest thing."
Cabaye expressed his gratitude to Newcastle for allowing him to leave, adding: "I had two and a half extraordinary years there and discovered the Premier League with them.
"The league is so difficult that we struggled to get into the Champions League.
"Last summer it didn't happen (a move to a Champions League club in the form of Arsenal). It was difficult to accept at first but, in the end, it was a good decision.
"But the opportunity came up this time and they respected what my heart wanted. I thank them for that."
A Newcastle statement read: "Newcastle United have benefited significantly from Yohan's talents since his arrival from Lille in the summer of 2011, and the player has likewise benefited, developing hugely during his time on Tyneside.
"The club wanted to keep him but the lure of Champions League football and the prospect of being involved in the sporting project at PSG was an opportunity that Yohan made very clear to us he wanted to take.
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