Bids of £12 million and £14m have been rejected out of hand by Blackburn, who are determined to hold on to their prize asset.
However, the Independent reports
that Hughes will return with an improved offer of £19m, hopeful that Blackburn will find it too hard to turn down.
Santa Cruz has spoken of his desire to work under Hughes again as City attempt to turn themselves into genuine title contenders.
However, much will depend on Sam Allardyce, and whether he can find a replacement. Reports have suggested that Allardyce flew to Spain recently to cast his eye over Racing Santander striker Nikola Zigic.
Blackburn had been interested in Austrian Marc Janko, but were put off by Salzburg's £10m asking price.
Rovers have also been linked with £7m-rated Standard Liege forward Milan Jovanovic.
Meanwhile, Toure remains firmly on City's radar, as Hughes desperately attempts to plug his leaky defence.
The Independent claims Arsenal have been blowing hot and cold over the Toure issue for several weeks, with City executive chairman, Garry Cook, not optimistic a deal can be done in time.