Hughes, who announced earlier this week he would be hanging up his boots, had been discussing a suitable role with Howe for the past couple of months.
Howe was given the green light to keep him on at a board meeting on Wednesday and the Scotsman yesterday received an official offer and job description.
Hughes, who also works as a pundit for BT Sport, would be employed by the club on a full-time basis with part of his role likely to include scouting and team analysis.
Despite being restricted to seven appearances this season, the 34-year-old’s experience and knowledge were invaluable to Howe as Cherries quickly adjusted to life in the Championship.
Meanwhile, striker Jayden Stockley is pondering the club’s offer of a new one-year deal after meeting Howe for his end-of-season debrief earlier this week. Talks are ongoing with out-of-contract pair Darryl Flahavan and Benji Buchel.
Development squad quartet Josh Wakefield, Josh Carmichael, Aristide Bassele and Harrison Gilkes are all understood to have agreed in principle new deals.