The 22-year-old is a versatile player who can fit in either at left-back or on the left of midfield.
"I had an enjoyable time at Lincoln, making the play-offs twice but I have the chance here now," Hughes told the official site.
"I'm just looking forward to getting on the pitch now and it's one of the bigger clubs in the league," he added.
"The manager has shown ambition of getting back into the Premiership and that's every footballer's dream."