The Gunners chief failed with a late £10m summer swoop for the French playmaker, who was keen to make the move from Tyneside to North London.
With Cabaye having impressed for the Magpies so far this term, rumours of a new bid next month have been circulating once more in recent weeks.
However Wenger says that he will not be bidding for the 27-year-old, as he is content with the players currently at his disposal:
“Cabaye is a great player, but I am happy with the midfielder I have.” He is quoted by The Metro.
Cabaye is also on the radars of both Liverpool and Tottenham, and could still be the subject of serious offers.
Although Arsenal are out of the race for the midfielder, Wenger is expected to move for a striker.
The Emirates Stadium boss is believed to be worried by his current lack of alternatives for Olivier Giroud, with an injury to the ex-Montpellier man likely to force him into fielding Nicklas Bendtner on a regular basis.