Manchester City will face Liverpool at home on Sunday.
Hughes told the Independent: “Liverpool have been a top four side for a number of years now. They have a huge history of winning trophies.
“I sense that this season they will have a real go at trying to win the Premier League.
“Liverpool have had a great start. They look confident, strong and assured. They will run the top teams very close.
“It is a big test for us as they are playing exceptionally well at the moment.
“Hopefully we will be in a position to cause them problems as we have have some good players in key areas of the park.”