Chelsea have already rejected two bids from the Eastlands outfit for Terry, making it clear their prize asset is not for sale.
However, Hughes has admitted he is still keen to strengthen his team’s back-line, with the England captain believed to be his No.1 target.
The Stamford Bridge side are reportedly so unhappy with City's ongoing pursuit of their star man that they may complain to the Premier League, but Hughes has dismissed any allegations of wrongdoing.
"I saw those reports but to be perfectly honest I am not sure where they have come from," he said.
"We have put in a bid for a player from Chelsea. We didn't advertise the fact that we had gone in and we tried to keep it under the radar.
"It wasn't ourselves that published the fact that we had made a bid for John Terry, it was actually Chelsea themselves.
"They obviously wanted to put that into the public domain and ever since then I have just been answering questions about John Terry.
"I don't think that is any basis to report either myself or Manchester City.”
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