The 25-year-old told Le Parisien he would find it "hard to say no" if PSG bid for him at the end of the campaign, but Hiddink suggested the player would be better off proving his worth in England.
Hazard, Chelsea's player of the year last season, signed a new five-year contract last year, but scored his only club goal of the season so far from the penalty spot against second-tier side Milton Keynes Dons in the FA Cup on Jan. 31.
"Well, he has a contract that he extended but first he must get fit and show he is a top player and then for Chelsea, which is a top club, he can be of huge value," Hiddink told reporters when asked if Hazard would stay in England.
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"PSG have big targets to win the Champions League and, step by step, they have gathered a reputation and are very serious about becoming one of the biggest teams in Europe, so this challenge, I can understand.
"(But) for me, I think big, big, big players always like to be in the biggest league, which is the Premier League, La Liga and also the Bundesliga."
Chelsea's chances of playing in the Champions League next season rest almost solely on them winning the competition as they are 12th in the Premier League, 14 points behind fourth-placed Manchester City who occupy the final qualifying spot.
The second leg with PSG is at Stamford Bridge on March 9.
(Reporting by Simon Jennings in Bengaluru; editing by Sudipto Ganguly)
