Real Madrid are pushing hard to land the Welshman.
"Firstly you have to applaud Bale," Hughton told talkSPORT. "He's done everything right.
"We have, in this country, a genuine world class player and we [Norwich] were on the end of his quality a couple of times last season.
"What we don't know is the facts. We don't know what the actual figures are. Tottenham are in a very good position, they have a world class player and I'm sure they'll make the right decision.
"They know how important he is to the side but if that money keeps escalating then it becomes more difficult.
"The lad's head begins to be turned. I applaud them for the stance they have taken so far though."