The Mancunian, 37, has joined the Millers from fellow Championship side Bolton Wanderers where he was professional development coach.
Hughes will play a major role for the Millers in helping bridge the transition of players coming out of the club’s Academy into the first-team environment.
Hughes said: “I have been lucky enough to have worked as an academy coach with the under 21s at Bolton, but the opportunity arose to come here and create something which is very exciting.
“I am honoured to have been chosen for the role, and to have the opportunity to help put in place a structure which will help the club develop some exciting talent.
“The role here will see me working closely with both the Academy and first team. It is an exciting project and it is a challenge that I am really looking forward to.”