Falkirk confirmed on Monday night they had rejected two offers from Hibs for Arfield, saying they "fell considerably below the club's valuation" of the 20-year-old, who is currently on Scotland Under-21 duty.
Hughes had been hoping to make midfielder Arfield his third signing from the club he quit last summer.
"It's my job to identify players I believe can strengthen our squad and Scott Arfield is a player I'd like to bring to Hibs, simple as that," he said in the Edinburgh Evening News.
"He's a player I enjoyed working with at Falkirk and is an exciting young talent, though he still has a bit to go.
"The board have given it their best shot at trying to get him and I can't ask for any more than that."
Source: Team_Talk