Richards quashed rumours earlier in the week suggesting he would be leaving Eastlands in the near future, and he is reportedly close to securing a new five-year deal with the club.
The 21-year-old is looking to rediscover his best form after a patchy last season, but Hughes insists the Blues are going to stick by their academy product and let him remain in the side.
"I'm not quite sure where it came from that Micah might leave," Hughes said in the Manchester Evening News. "He is a big part of what we are doing here.
"I have said for a number of weeks when asked about players' futures that we are in the process of building and creating a squad with players of the right quality, so we are not about to tear the squad apart and let good players leave.
"It's about making sure we have quality across the board, and Micah is part of that."
Richards is set to return to right-back for the Premier League clash against Fulham on Sunday, after playing in the centre of defence against Wigan last weekend.
Stephen Ireland, Vincent Kompany and Nedum Onuoha have all signed long-term contracts at the club in recent months, and Richards is expected to put pen to paper in the near future.