Hazard has been heavily linked with a move to join the La Liga giants following his exploits at the 2018 FIFA World Cup in Russia.
Hughes, a former Chelsea striker, said that Hazard will only leave the Blues based on what he wants to achieve as a player.
“It won’t be a financial consideration, it’ll be about what he [Hazard] wants to achieve as a player,” Hughes told Sky Sports.
“Clearly at the level that he’s at it’s about trophies, about winning the big competitions.
“He has to make the decision whether or not he feels he can do that with Chelsea or if he’s better served going to one of the major giants in European football.
“Real Madrid has a certain charisma to it clearly, an attraction for lots of top players.
“If you do get the opportunity to go to one of those huge Spanish clubs, then you’re going to consider it. You have to accept that.
“But the Premier League, in my view, and when you listen to the foreign coaches and speak to them after the games, they say the Premier League is the best league in the world.
“You would be foregoing that, but you’d have the opportunity to play at a huge European club with a fantastic history and potential to win the biggest prizes in football.
“You can understand that he would consider it if it was offered. Maybe it has not been offered.”
Hazard has scored eight goals in ten appearances for Maurizio Sarri’s men this season.
The 27-year-old hopes to lead Chelsea to victory when they take on Manchester United on October 20 in their next Premier League fixture.
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