Anfield boss Brendan Rodgers is ready to go back into the market in the winter window following a busy summer on Merseyside.
And the report claims Hughes is one of the club's top targets heading into the New Year. The England under-21 international has been compared to Reds legend Steven Gerrard after a number of impressive performances at the heart of the Derby midfield.
Still just 18-years-old, Hughes has already made more than 50 league appearances for the Rams in the Championship.
Reportedly scouted by Real Madrid and Manchester City at a young age, the teenage playmaker is one of the hottest properties in English football.
Liverpool have been heavily linked but Manchester United are also thought to be scouting him.
Derby manager Steve McLaren admitted upon taking the job at Pride Park earlier this season that he faces a real battle to stave off interest in Hughes, but the Championship club could demand up to £15m for his services.
Rodgers reportedly feels Hughes fits Liverpool's style of play perfectly, and the Liverpool boss is keen to secure one of the brightest talents in England before the club's rivals.