Speaking to the Daily Mail in an interview conducted before the link to City emerged, Hughes suggested his long-term career aspirations might not be satisfied at Ewood Park.
"It's my ambition to go as far as my ability will allow me to, just as I did as a player," the ex-Wales boss said.
"That approach still holds true as a manager. If my ability allows me to go on and progress and get top jobs then all is well and good.
"I'm not someone who accepts mediocrity."