"We certainly want Michael to stay because he is an outstanding young talent," said Hughes. "He is a Manchester City player and we fully expect him to be one for many years to come.
"He has the right qualities. He is a young man who can develop here. He understands where the club wants to go and I am sure he wants to be part of it."
Although Johnson was troubled by a thigh problem for most of last season, Hughes saw enough of the Urmston-born player to be convinced of his qualities.
"He won't find anywhere better to develop than here," said Hughes.
"We want Michael to be the best he can be. We have all been impressed with what he has shown so far and I am sure he will be an England regular.
"Michael needs to keep working but we can help him," said Hughes.
"His groin problem did hamper him because he was not able to perform at the level people knew he was capable of.
"But that seems to have settled down somewhat. He has just missed a week's training because of a bang on the foot but he looks strong now."