Manchester City have signed Belgium international defender Vincent Kompany from Hamburg for an undisclosed fee.
The 22-year-old defender, who has played 23 times for his country, began his career at Belgian club Anderlecht.
Kompany, who has signed a four-year contract, is regarded as one of the brightest central defenders in the European game.
"Vincent is one of the outstanding talents in Europe and understands the ambition of the club," Hughes said.
"We want to be a young, vibrant team with energy and technical ability. He comes into the category of the kind of young player we are trying to attract."
He is the third signing for City boss Mark Hughes following the arrival of striker Jo and defender Tal Ben Haim.
And it is Kompany's versatility that Hughes is most excited about.
"The thing like about him is his flexibility to play exceptionally well in a number of positions," said Hughes.
"That will help the team as the Premier League is a long hard season and there will be injuries unfortunately.
"We will need players who are adaptable and Vincent will bring us that quality."
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Kompany had only recently returned to Hamburg from the Beijing Olympics, having been involved in a club-versus-country row.
The defender had been scheduled to play two Olympic group games for his country before flying back to Germany.
He was sent off in the 1-0 defeat by Brazil and was suspended for the next game against China.
Hamburg then threatened the Belgian Football Association with legal action after Kompany initially refused to fly home.
Belgium eventually lost 4-1 to Nigeria in the semi-finals to miss out on a showdown with defending Olympic champions Argentina in the final.
Kompany himself believes joining Manchester City is the perfect move for him at this stage of his career.
"The chance came at the right moment - this is a club with a lot of ambition," Kompany said.
"That helped me make my decision and I am looking forward to playing in the Premier League.
"I just had a good feeling about this move. When you feel they are dynamic people at City, who know a lot about football, you realise you are in a good environment to improve your game."
Hughes has struggled in recent weeks to add to his squad because of the off-field uncertainty at the club.
Owner Thaksin Shinawatra is facing corruption charges in his native Thailand and recently fled to Britain.
He has repeatedly denied the allegations, which he says are an attempt to remove him from politics.
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