And Hughes added: "The academy has been extremely successful in recent years. With extra funds it can produce even better players.
"It's important for any successful team to have a group of players who have an empathy for the club.
"We have that with the guys who have come through the academy.
"But we are not just going to fill the squad as a token gesture to the work the academy does.
"The quality of players has to be sufficient to play in the Premier League. That is what their work is judged on."
City broke the British transfer record when they paid Real Madrid �32.5m for Brazilian Robinho on transfer deadline day.
The Abu Dhabi United Group have already made their intentions clear, claiming they intend to make City "bigger than both Real Madrid and Manchester United".
And the club have been linked with a host of big-name players, such as Liverpool's Fernando Torres, Cesc Fabregas of Arsenal and Manchester United's Cristiano Ronaldo.
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