The former Coventry City striker joined Oldham Athletic after his release from prison and has scored eighteen goals from 36 starts this season.
He had interested Doncaster Rovers earlier in the season but Blackpool have moved to take him on loan for the rest of the season and could sign the forward who is out of contract at the end of the season.
Oldham caretaker Joe Royle has already admitted that he not expecting Hughes back next season by saying: "It is unlikely Lee will be here next season as we cannot afford him."