Despite suggestions that Liverpool had secured a £12m deal to sign Hughes, 18, Rodgers revealed he is not ready to bid claiming the youngster is at the best place for his development.
"I never normally say anything about players but I do really feel for this young guy," he said.
"It is something which has been ongoing and I don't normally comment on speculation but (I will) because I have the interest of the player at heart.
"This is a kid who if he picks up the paper every weekend he is linked with coming to Liverpool.
"This is a very talented young player that either a person or a group of people aren't doing him any favours whatsoever by constantly linking him with coming to Liverpool.
"I read we had put in a bid or something had been agreed and there is nothing further from the truth. There is no bid, there has been nothing.
"This is a young kid learning the game, he is at an outstanding club at Derby, he has a great manager there and we sent one of our young players (Andre Wisdom) there to develop and learn.
"I think Will Hughes is a wonderful young talent who just needs to play football and for me he is probably at the best place he could be.
"We are always looking for talent - young players, senior players, and he along with many other players is probably one we've looked at."
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