Welshman confirms second rejected bid...
Schwarzer, 37, has been chased by the Gunners all summer and a £2 million offer was dismissed in May. A repeat of this proposal was thrown out by the Cottagers again this week and Goal.com UK understands they are demanding the exchange of Carlos Vela and cash before a deal would be considered.
Speaking at his pre-match press conference ahead of this weekend's clash with Manchester United, Hughes declared Fulham "wouldn't encourage an improved bid" for the Australia international.
He said: "Mark [Schwarzer] is aware of the interest of Arsenal. That knowledge is distracting and disruptive. It's not at all inevitable he will leave.
"We wouldn't encourage an improved bid."
He added: "There wasn't an improved offer from Arsenal - it was exactly the same one that was put forward in May.
"The situation hasn't moved on. There's been contact but no improved offer.
"I don't know if Arsenal are trying to disrupt him. There are many things clubs, players and agents do to unsettle players."