The duo were signed by Alan Knill in the summer after impressing on the pre season tour of Ireland, however will be moved on by manager Brian Laws.
"There's going to be a partial settlement for the two boys so they can move on", he said.
"It's unfortunate, but they're just not quite at the level we are and where they need to be".
Keegan made one start and appeared three appearances from the bench, but Hughes failed to make an appearance.