A former Cherries player who made 185 appearances for the club, in addition to earning five caps for the Scotland national team, Hughes immediately transitioned into a recruitment role upon his retirement from playing in 2014.
The erstwhile midfielder - who also had stints at Arsenal, Portsmouth and Atalanta BC - helped Bournemouth reach the top flight for the first time in the 2014-15 season, before being promoted to first-team technical director in 2016.
The 2023-24 season represents Bournemouth's seventh season in the Premier League, and the Cherries have also reached three EFL Cup quarter-finals and made one appearance in the last eight of the FA Cup with Hughes working upstairs.
A report from the Daily Mail states that all of Liverpool, Roma and Newcastle United are admirers of Hughes, and on Tuesday evening, Bournemouth announced the imminent exit of the in-demand transfer chief.
"Working for AFC Bournemouth has always been a source of great joy and pride for me. Initially representing the club as a player and then subsequently in a football leadership role, I count every moment I've spent here as a blessing," Hughes told the Bournemouth website.
"The journey we have been on, as a club, is nothing short of remarkable. Where we are currently, on and off the pitch, assures me the future is bright.
"In Bill Foley, AFCB has an owner who is as ambitious as he is smart and committed. In Neill Blake, the club has a top-tier CEO who has always made decisions which place the best interests of the club and its supporters before anything else.
"On the technical side, we have a group of players and coaching setup who complement each other perfectly. Andoni [Iraola] is one of Europe's most exciting managerial prospects and the playing squad is arguably the best we've ever had. I've zero doubt that match days will continue to be exciting and entertaining for our fans.
"The club requires a healthy lead up time to plan for the summer and beyond so this is the right time to announce that I will be leaving at the end of the season. I look forward to the day I return as a supporter in the company of my wife and our five children who are the biggest of Cherries fans, but before then an important end to this season awaits and I am looking forward to a strong finish. Up the Cherries."
Liverpool are currently working without a transfer guru following the conclusion of Jorg Schmadtke's short-term reign, which came to an end following the January transfer window, and the Reds hierarchy supposedly want to finalise an appointment by the end of the month.
Liverpool are supposedly keen to re-hire former director Michael Edwards - who spent 11 years working in the Anfield offices from 2011 to 2022 - but the 44-year-old has reservations about returning.
Alternative options include Nice's Florent Ghisolfi and former AC Milan chief Ricky Massara, but Liverpool must fend off interest from two other clubs to appoint Hughes as their new sporting director.
Newcastle, whose head coach Eddie Howe worked alongside Hughes at Bournemouth for several years, are said to be monitoring the situation after placing Manchester United-bound Dan Ashworth on gardening leave.
Roma's sporting director position is also vacant due to the exit of Tiago Pinto in February, and Bournemouth are allegedly keen for Hughes to move to a foreign club rather than a Premier League rival.