Schwarzer agrees new deal
The 38-year-old Australian, who joined the club from Middlesbrough in 2008, was heavily linked to Premier League rivals Arsenal during the last transfer window.
Hughes told a press conference today: "He was obviously very flattered by the interest. We're delighted that he's decided to stay here and we can move forward now."
Hughes continued: "It's something we've wanted to do for quite some time. I think Mark was keeping his options open and he had every right to do that. He's very happy to sign."
The deal is likely to be for a further two years, which would mean Schwarzer turning 40 as a Fulham player.