The teenager was reported to have arrived at Fulham for a medical.
Hughes last week revealed his interest in 19-year-old winger who last month signed a new four-and-a-half-year contract at Chelsea.
Hughes said on Friday: "He's a player I know and I like the qualities he has."
The same day saw Chelsea boss Carlo Ancelotti reveal he was still considering whether to farm out Kakuta, widely regarded as one of the brightest prospects in the game when he joined the club from Lens in 2007.
"We are thinking about if it's good for a young player to have experience on loan for six months," said Ancelotti at the time.
The French youngster has made 16 appearances for Chelsea but only five starts and was an unused substitute in Monday night's 4-0 Barclays Premier League win over Bolton.