Hughes staying with Dragons
Newport-born centre Hughes has spent this season so far on loan at Rodney Parade from Exeter Chiefs. But he will now stay until 2018 after agreeing a deal.
Hughes, 25, has started all four of the Dragons' European Challenge Cup ties this campaign, including a try in the opening game against Sale Sharks.
The former Wales Under-20s international said: "It's great that I have signed a contract with the Dragons. When I came back here I was on loan originally, but it has been going really well and I feel like I have fully settled in with the squad.
"It is different here now compared to how it used to be, especially having the new training facility in Ystrad Mynach.
"We are a team on the up with all of the players doing well and it's only going to get better once we are back up to full strength with the return of the injured players."
He continued: "I have to thank Exeter as they have made me a better player and have developed me over the last two years – I feel like I have come back a better more rounded player because of my experience there."
Hughes has made 26 European appearances that included scoring two tries in three games for Chefs last season.
Dragons director of rugby, Lyn Jones added: "This is great news for us as a Region. Adam has returned to the Dragons as a more confident and understanding player. This is an important signing for us as we move forward."