The 19-year-old has failed to agree a new deal at City and has been strongly linked with a move to Chelsea.
“We are not in a position to dictate that [Sturridge’s future] really,” Hughes told Sky Sports News. “We have offered Daniel a deal that we think is at the level he should be at.
“He is in a strong position because he is in the last year of his contract
“He is keeping his options open, which he has done for quite some time, we just have to wait and see.
“Obviously I have made my intentions very clear to him I would like him to stay but it may be out of our hands.”