The France international signed a five-year contract with the northeast club.
Cabaye, a skillful central midfielder with an eye for goal, struggled to hold down a regular place in Lille's double-winning team.
The 25-year-old Cabaye has scored 39 goals since making his senior debut with the French club in 2004.
He says "this is a fantastic move for me. I have enjoyed great times with Lille but the time is right now to test myself against the best and playing for Newcastle United in the Premier League does just that."