He also captained the side and Hughes is in no doubt that Kompany will further aid City's assault on the top four supremacy of Manchester United, Chelsea, Liverpool and Arsenal.
"He has been desperate to get back into action and in fact we have had to hold him back a little since his operation in the summer, such was his desire to return to action," said Hughes.
"But that is the kind of lad that he is. He is still only 23-years-old but is so mature in his outlook; that is why I made him captain last season on occasions.
"He wants to improve, he is ambitious and he is desperate for success. He was one of our most reliable performers last season and it is great that we have been able to secure his services for the next five years.
"It is another sign of our commitment to young talent. Vincent is a big part of our future."
Kompany had been linked with a move away from Eastlands, with Barcelona one of the clubs reportedly interested in the 23-year-old, but he is pleased that speculation about a move away can now be ended.
"In the end you just don't pay attention to the speculation. City's ambitions are my ambitions and I want to be one of the main players in a very big team," said Kompany.
"I am happy to be here, the fans are incredible so why would I want to go elsewhere."
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