The 17-year-old playmaker has been watched by Arsenal and Tottenham, but the Premier League champions are reportedly weighing up a £7m bid for the England under-21 star.
Hughes has drawn admiring glances from the Premier League, after breaking into the Derby team this season. The young midfielder has blossomed into one of the Football League's hottest prospects, and Manchester City are thought to be willing to go all out to beat their Premier League rivals to the signature of Hughes.
The teenage midfielder has made 30 league appearances for the Midlands club, scoring two goals, but it's his ability to pull the strings from central midfield in England's second tier that's caught the eye of the big clubs.
The youngster does not look overawed, possesses a good eye for a pass and is comfortable with the ball at his feet, running at opponents.
Manchester City assistant manager David Platt watched Hughes against Brighton on Saturday, and the report claims Manchester City are willing to pay up to £7m to bring him to the Etihad Stadium this month.
But Arsenal and Tottenham have both been credited with strong interest in the midfielder, and a bid from City could prompt both clubs to consider a move of their own before the window closes in just over two weeks time.
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