Local rivals Manchester United and Manchester City have been drawn together in the semi-finals of the Carling Cup, while Blackburn will face Aston Villa after defeating Chelsea.
City defeated Arsenal 3-0 on Wednesday night to reach the last four of the competition and their reward is a two-legged tie against Sir Alex Ferguson's cup holders, who defeated Tottenham on Tuesday night.
Eastlands will be the venue in the week commencing January 4 before the two teams reconvene in the week commencing January 18 at Old Trafford - the scene of a dramatic 4-3 win for United in September.
The last time the two sides faced each other in the competition was the 1975-76 season when City triumphed 4-0 at Maine Road.
"It is a fantastic draw," Hughes said. "Everybody in Manchester will be excited by it and probably a much wider worldwide footballing public as well."
Blackburn, who shocked Chelsea when beating the Premier League leaders on penalties at Ewood Park on Wednesday night, will be at home in the first leg against Aston Villa. It is the first time that the clubs have met in the League Cup.