He said: "Mark's done a fantastic job and deserves his new contract," added Savage. "I'm sure one day if a Manchester United or a massive, massive club comes calling I'm sure he'll be first in line.
"Who would have thought it? Not many people thought he would even be a manager but to do what he did with Wales and now Blackburn is an incredible achievement."
Hughes signed a new deal last week through to 2010.