Hughes, with one year remaining on his Watford contract, has so far refused to sign a new deal with the Hornets.
The midfielder has drawn attention from Crystal Palace, with Eagles boss Patrick Vieira interested in taking him to Selhurst Park.
However, Palace face serious competition from Sean Dyche’s Burnley, who are looking for reinforcements.
Burnley have made a move to sign the midfielder and are set to rival the Eagles for the Watford player’s signature.
Hughes was also considered by Newcastle United, but a lack of agreement between manager Steve Bruce and staff at St. James Park brought things to a standstill.
Burnley have had a quiet transfer window, with all of their signings being in the defensive department, and boss Dyche will be hoping to sign Hughes to add reinforcements in the middle of the park.
Hughes has made nearly 80 appearances for the Hornets in the Premier League already and has experience to provide to a dressing room if indeed he does move this summer.
