The former Birmingham City goalkeeper has made a stunning start to the season, profiting from Asmir Begovic’s move to Chelsea to establish himself as Stoke’s number one.
Butland has kept five clean sheets so far this season, and his good form has been recognised by England boss Roy Hodgson, who has handed him two caps since October.
Hughes, however, has responded to the recent Liverpool speculation by assuring reporters that his number one is going nowhere for the foreseeable future.
“Jack's going nowhere. He's progressing well but he's very early into his career development as a No 1 keeper. People are aware of him - and they have been for a long time,” Hughes explained.
“Jack forced his way into the England squad when he was 19 but he needs a season-in-season-out of week-in-week-out in the Premier League.”
“He's had a great career progression, every step he has taken he has dealt with. Now it's about consolidating himself in a very good Premier League team. That's the challenge for him."
"Do I think that [reported £20m] is a fair value? No. We wouldn't place a value on him anyway."
Hughes was speaking ahead of his side’s League Cup quarter-final clash with Sheffield Wednesday.
The Potters reached the last eight after defeating Chelsea 5-4 on penalties in the earlier round, Butland brilliantly saving the crucial penalty from Belgium’s Player of the Year Eden Hazard.