The 20-year-old striker has impressed on loan with Brighton & Hove Albion since heading down south in November, scoring five vital goals for the Premier League promotion chasers.
Wilson may not have been given the opportunity to shine under Louis van Gaal at Old Trafford, after making his debut for Ryan Giggs in 2014, but the development made with the Seagulls will no doubt put him in good stead for next season and beyond according to Hughton.
"James has certainly done enough with us in the period that he has been here that I think he has developed," the Brighton manager told Tribalfootball.com.
"He's a talent, there is no doubt about that.
"He's a wonderful finisher.
"When you are somebody who is that young, the bridge and the gap, sometimes it's not just about ability.
"It's about having that confidence, having the physicality to deal with bigger and stronger defenders.
"What I would say is that I feel he will go back to Manchester United a better player which puts him in a better position to be able to compete with what they have there.
"What I don't know is the levels they have there now and perhaps will do in the summer but he has certainly put himself in a better position now than when he came (to Brighton)."
The return bout takes place at the Amex Stadium on Monday, May 16.