Hart lost his place in the England squad following the arrival of Shay Given to Manchester City in January, and is keen to re-establish his top flight credentials.
Hughes has never had any intention of letting Hart leave on a permanent basis but accepted the England Under-21 keeper might need a short spell away from Eastlands in order to further his career.
Birmingham manager Alex McLeish has already been in touch and is thought to be keen to install Hart as his first-choice ahead of Maik Taylor as Blues attempt to consolidate their position as a top flight club.
And, with Given certain to remain as his first choice for the foreseeable future, Hughes is ready to let the deal go through.
"It is something we are looking at," said Hughes.
"It might benefit Joe because it would give him the chance to play on a more regular basis.
"That in itself would help his development. It is something we are seriously considering and it might well happen."