The Chelsea skipper was strongly linked with the Blues during the January transfer window, with Hughes ready to tempt the centre-half with a lucrative contract.
However, the England international, who has spent his entire career at Stamford Bridge, has made it clear that he has no intention of leaving Chelsea.
That stance has been reiterated in recent weeks, after speculation resurfaced, and Hughes has been forced to admit defeat in his pursuit of the talented 28-year-old.
"Any manager would be interested in John Terry but I can't see him coming on the market any time soon," said the Welsh coach.
Respect"John is an outstanding player, someone everyone in football has a great admiration for.
"He's a great guy and commands respect because of his attitude, application and the way he leads his team."
Hughes has also strenuously denied claims that City offered Brazilian superstar Robinho as bait in their efforts to sign Terry.
"Swapping Terry for Robinho was never on the agenda," he said.
"Chelsea had a real interest in Robbie (last summer) but he's our player now, thankfully."