The 16-year-old had only been with the Red Devils for a year following his arrival from Middlesbrough’s academy in February of 2018.
However, Hughes has decided to make the “tough decision” by leaving the Premier League giants in order to move to their rivals Leeds in the search of more opportunities.
The teenager, who plays predominantly as an attacking midfielder, is reported to have turned down a scholarship at Manchester United in order to move to West Yorkshire.
Hughes has represented England at U15 level, and is expected to slot into the U18 side at Elland Road next term.
He becomes the fourth capture of the summer thus far, with Jack Harrison returning season-long loan deal from Manchester City and Ben White joining on loan from Brighton and Hove Albion.
Jack Clarke was sold to Spurs but has also returned for next season, while Helder Costa has signed from Wolverhampton Wanderers to complete the quartet of loan deals.
Get the latest personalised Red Devils products on our new TEAMtalk Man Utd shop!