The France midfielder refused to play in Premier League games against Manchester City and West Ham at the beginning of the season after Newcastle rejected Arsenal's bid for him.
However, Cabaye then settled his differences with the club and has played an integral role in an impressive Premier League campaign to date.
The former Lille playmaker has scored four goals in the top flight and pulled the strings in the middle of Newcastle's midfield.
Cabaye's performances have led to renewed speculation that he could be on the move in the January transfer window, but Pardew has warned the grass is not always greener on the other side.
Newcastle's manager said: "He's in an environment where he's got pole position. You don't always get that. You can get lost at some clubs."
Ligue 1 champions Paris Saint-Germain and Premier League leaders Liverpool are just two of several clubs to have been linked with a move for Cabaye.
