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Tugay, the latest player to be linked with a new contract, has a contract until the end of the season but Hughes rates the skilful midfielder and is looking to extend his stay by another year.
The Turk, who turns 38 later this month, has become something of an Ewood legend since signing from Rangers in 2001 and, despite his age, has proved he is still a useful player to have.
"It is something we will discuss over the next few weeks," manager Mark Hughes told The Sun newspaper.
Meanwhile, Hughes has told the Lancashire Telegraph he is confident that a contract deal with Benni McCarthy will soon be sorted out.
"They are still on-going," he said.
"We spoke to his agent last week so hopefully something will get resolved soon."