The former Tottenham midfielder has been linked with a summer move to Aston Villa but the Potters manager insists he is unaware of any interest in the Honduran
The Honduras midfielder, who saw a transfer to Qatar Sports Club fall through due to a failed medical earlier in the close-season, has found opportunities limited since Hughes took the Britannia Stadium reins last year.
And, while conceding Palacios may need to move on to find more playing time, Hughes insists he is unaware of any renewed interest in the player.
"I'm not aware of that interest," he said. "He had an opportunity to go to Qatar which would have been good for him but that fell through.
"We like him as a person and a player but sometimes it's right to move on.
"Interest from other Premier League clubs is not something I'm aware of."
Stoke face Hull City in the Premier League on Sunday.