Valencia revealed on Thursday that the two clubs had met regarding a possible deal for Villa, but that City did not make an offer.
Hughes has confirmed that the club did make an enquiry for the Spain international before Christmas, but have not been back in touch.
The City boss also suggested that the price quoted by Valencia for Villa was a factor in City pulling out of any possible transfer.
Walked away"There was interest shown just before Christmas," said Hughes on Sky Sports News.
"Basically, we went to them with a view to ask about certain players.
"We were told the prices of certain players and we walked away.
"Obviously, a question has been asked to people at Valencia, 'Has there been contact with Manchester City?'
"Yes, there was, but it was some months ago and it hasn't been revisited since then."