Giggs assumed interim responsibility at Old Trafford when David Moyes was fired in 2014 before working as Louis van Gaal’s assistant.
And Hughes believes the current Wales boss will be “in line” to take over the Red Devils. when Ole Gunnar Solskjaer is shown the door after a sad start to the new season.
“I think Ryan is in a good place in his management career,” said Hughes BBC.
Subscribe to TEAMtalk’s daily newsletter …
“It’s on the up. He’s probably more likely to get a chance at United than he was when van Gaal left in 2016.
“Maybe they felt that his management resume wasn’t strong enough at this point. But if he goes to the European Championship and does well, there is no reason why he won’t be in the frame.
“Giggs worked very closely with Van Gaal, which I thought was a good decision.
“I thought it was with a view to taking on the role when Van Gaal left. It wasn’t supposed to be, and they decided on a bigger name – Mourinho.
“I think maybe that was pushed a bit because of the appointment in the town of Guardiola.
“Maybe they felt like they needed like for like, which probably hurt Ryan’s chances.”
Giggs Unfair criticism
Hughes has defended Giggs for the criticism he received when he was still playing for his country.
There have often been comments of a lack of commitment to the cause, but Hughes disagrees.
“There were a few comments, shall I say, when he got this [Wales] Job because people were questioning his commitment to the Welsh cause, ”added Hughes.
“But listen, he was in difficult situations and there was always a balance with his club at that time.
“Sir Alex was very strong and was very reluctant to have players – English, Irish, Welsh, wherever they came from – leave on international service, unless the games were key.
“He wasn’t very happy with friendlies to say the least. But we got him for friendlies on occasion and he was always there for the big games. So his commitment was always there. ”
READ MORE: Man Utd midfielder Paul Pogba isn’t hoping to sign for Real Madrid, according to Spanish newspaper HOW.