The Welsh striker was sold to Barcelona in Ron Atkinson's era but when Fergie wanted a crowd- pleasing figure to crank up his new plans for the Reds he liberated Hughes from his European misery.
Schmeichel was to join Sparky as Fergie's powerful `Dream Team' took shape.
But his relationship with Fergie reached a crisis point in the middle of the 1994 season when he was sacked!
In the Manchester United Opus, Hughes and Schmeichel talk candidly about their Reds' careers.
"I didn't really want to go to Barcelona in 1986. It was one of those things that snowballed," recalled Mark.
"Liverpool were very dominant, and one reason was that they were constantly adding to the quality they had, sometimes making purchases who wouldn't go into the first team straight away but would be on tap for the future. That continuity was something United didn't have. The club kept breaking up teams to try and find the next big thing, and I was a victim, I suppose.
"Ron Atkinson bought Terry Gibson and Peter Davenport and it was obvious I was going, though I wasn't allowed to tell anyone and I had to keep denying the move. It was a mess.
"Initially there was interest from Italian clubs, and then I found myself in Zurich with the vice-president of Barca and naively signed a bit of paper which I didn't really think meant anything but it meant everything. Right up until the moment I stepped on the plane, I was hoping something would happen to keep me at United."
Bayern Munich
In July 1988 while he was on loan at Bayern Munich, Fergie brought him back.
"Basically, he said I should never have been sold in the first place, he wanted to make a signing to get the fans going, and he felt I was the man to do it," said Hughes.
"He felt I could come back and complement Brian McClair, which I did and couldn't!
"Once I came back I'd changed as a person. I'd reflected on what I wanted from my career, and what I felt about United was: `This is my club.' I felt a real emotional tie and that was borne out by the way I tried to play. And I think the fans tuned into that; they understood that I had a great feeling for the club and that, at times, I could sense how they were feeling.
Hughes' United career ended in the summer of 1995 just months after being paraded around Old Trafford celebrating a two-year contract extension.
Sparky decided to agree to a new deal because of the Eric Cantona Kung Fu incident at Selhurst Park.
"I didn't play in that game. I was injured and I'm always of the opinion, rightly or wrongly, that if I'd been playing it wouldn't have happened," he added.
"It can't be proved, but I just felt there were certain occasions during a game where I'd see Eric wasn't happy and I'd try and get him out of that situation and perhaps put myself on the line instead. Usually, if you could take Eric out of things and let him calm down he was OK, but on that occasion he couldn't get himself out of a situation and the whole thing spiralled.
"I thought Eric would never be able to come back and play again, so we agreed on an extension. I waved to the crowd `Hey, I'm staying' but I didn't sign the contract because it needed sorting, pension-wise.
"In the meantime it became clear that Eric was coming back. We'd just bought Andy Cole and it was going to be Andy and Eric up front. I was 31, there was a lot more football in me and I wasn't ready to sit on a bench. It was definitely the right time to go."
Illustrious
Schmeichel's 'time to go' seemed to have arrived in January '94, three and a half years into what turned out to be an illustrious eight-year Reds career.
Fergie 'sacked' his keeper after a row at Anfield following the 3-3 draw with Liverpool.
"I was out. Out of the club. I thought I was leaving, so I called a squad meeting and said sorry to the lads for my behaviour. I didn't know, but Fergie was listening from behind the door," the Dane recalled.
"He welcomed me back. I think me having the guts to apologise to everyone was a sign of character he liked.
"He probably felt he'd been out of order as well, because to be honest with you, in the Liverpool game I was our best player on the pitch. It was 3-3, and had I not been on form we would have lost 10-3. And yet he was blaming me for my goal kicks!"
Could his relationship with Ferguson be termed stormy?
"Yeah, at times. And I think Fergie liked that. I think that's why Graham Taylor didn't want me later in my career at Aston Villa, because he knew I had strong opinions.
Good manager
"He just wanted me out of the way whereas a good manager like Fergie would say: 'That's the type of person I want out on the pitch.'
"There were loads of players like me at United. Look at someone like Keaney. He and Fergie argued all the time.
"The thing about Alex Ferguson is that he's so temperamental, but only in an immediate way. If somebody crosses him or challenges his orders he'll go absolutely berserk. He would get you into his office and shout, or he'd crucify you in front of the group. But his temper was always short-lived.
'I've got numerous examples of players who've been absolutely crucified at half-time and left thinking they were surely going to get substituted.
"They've sat there, taking their shinguards off, unlacing their boots, removing their socks, and Fergie would look at them and say: "What are you doing? You're going back out. Come on, get your boots back on."
"I remember when we lost at Southampton, the 6-3 game in 1996. Oh my God, he was ranting and raving in the dressing room. And obviously I had to take a lot of the flak we'd let in six goals and so did the defenders.
"Aw, it was not nice: 6-3 on top of losing 5-0 (to Newcastle) the week before. And what happens on the team coach half an hour later? He's playing cards with the guys!
"That's his nature and that's why he excels. He has the temper, that thing that drives people on."
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Funnily enough, my wife has that same temper as well!
Great, great, keeper for the reds,but why leave saying "My body needs more time to recover than the premiership allows"only to come back and play for two premiership clubs? We are not as daft as you think,and our memory is not that short Peter.
Steve, Yes big Pete came back and played in the EPL but you have to remember the 2 teams he played for where not involved in European games mid week like United. They werent playing 3 games a week from September to April like United do. He had longer between games to recover etc with City and Villa. I dont begrudge him his return to the EPL he was a great player for us and was worth atleast 20 points a year in the league with the saves he pulled off. He had his whole family based in the north west so it made sense he returned there to play out his final days.