City's ambitious bid to lure former FIFA World Player of the Year Ronaldinho to Eastlands ended in disappointment when AC Milan announced the Barcelona star will move to the San Siro.
However, Hughes was encouraged by City's Thai owner Thaksin Shinawatra decision to sanction a massive financial package for Ronaldinho, which would have paid the player £200,000 pounds-a-week.
"We have presented our case as well as we possibly could and the fact that we are in there trying to get one of the top players in the world shows our ambition and where we want to go," Hughes told the Manchester Evening News.
"I don't know the finer details of the negotiations, but the way the Ronaldinho deal was constructed was a little bit different by all accounts to an ordinary deal, so my budget would not have been affected as much as people think."
Hughes is already turning his attention to other transfer options, with reports suggesting he will move for Blackburn duo Roque Santa Cruz and David Bentley, who were both signed by the Welshman during his time at Ewood Park.
"Obviously, I am being linked with players that I know and possibly have worked with before and then there are others that agents are trying to move on and place," he said.
"There is a lot of that going on at the moment. It is not my way to divulge who were are going after. I will keep them under wraps in case someone jumps in at the last moment, but there is a lot of work going on behind the scenes."