Kerr trains with Falkirk
Kerr last month negotiated his early release from the remaining season of his contract at Easter Road after finding himself frozen out of the first-team picture by manager Mixu Paatelainen.
But Hughes admits he does not have the money to make a move for the former Newcastle trainee, who has found his career in limbo after falling out of favour in the capital.
"If I had the money would I sign him? It would depend how much money he was wanting. But right at this moment in time I've got great confidence and belief in my midfielders."