Lescott has been courted by City in recent weeks, with Everton rejecting offers of £15m and £18m from their Premier League rivals.
The centre-half recently handed in a transfer request, which was also turned down, but has since been dropped from the Toffees squad by David Moyes.
The Everton manager was unhappy with the England international's attitude and Lescott was forced to watch his side's 4-0 Europa League win over Sigma Olomouc on Thursday night from the stands.
Hughes admits there has been no progress on any deal for the 27-year-old this week, with City having been in Spain to play Barcelona in a friendly.
"I think we have discussed this at length for probably the past three weeks and it's just going over old ground," said Hughes.
"I've said time and time again that we've made bids for Joleon Lescott and they've been rejected by Everton, who are very much within their rights to do that.
"I respect that decision, that's the top and bottom of that.
"There hasn't been any update since we came back from Barcelona, so that's where we are. There hasn't been any opportunity to progress it because people have been busy."
When pushed on whether there comes a time to turn to other targets, Hughes confirmed that he has taken that stance in the past, but is yet to do so with Lescott.
He added: "I've said time and time again it comes to a point where sometimes you think it's not going to happen and you walk away from situations, and that's what we've done."
Hughes is still in the market for fresh faces before the window closes.
He said: "We are just trying to go about our business and bring good players to the club.
"We have been successful in that respect. Almost all the players we hoped to bring we have been able to do.
"Some we have missed out on but that will always happen. That's a process you legislate for and make sure you have other targets.
"We have been quite active in the window but there is always speculation and I am sure that is not going to go away when it closes.''