The married actor has been persistently rumoured to be homosexual since he played Australian musician Peter Allen in camp musical 'The Boy From Oz' in 2003.
Hugh is reluctant to refute the allegations because he feels it encourages a derogatory view of homosexuality.
He said: "I'd be happy to go and deny being gay, because I'm not. But by denying it, I'm saying there is something shameful about it, and there isn't anything shameful."
"The questions about sexuality I find more in America than anywhere else, because it's a big hang-up and defines what people think about themselves and others. It's not a big issue in Australia," he added.
Hugh also revealed he and his wife Deborra-Lee Furness - who have been married for 13 years - felt very strongly about adopting multi-racial children Oscar, eight, and Ava, three.
He added to Parade magazine: "Mixed-race babies have such a hard time being adopted that Deb and I checked off that box specifically when we were filling out our forms."
"Our lawyer brought the form back to us and said, 'This is not the time to be politically correct. Are you sure this is what you want?' We were definite about it. Adoption is about taking a baby into your home and your heart. It's the best thing we've ever done," he said.
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