It was reported last week that Bruce was keen on bringing the prolific Championship striker to the KC Stadium following the departure of Shane Long to Southampton for £12million earlier this month.
Bruce reported Blackburn were open to selling their star asset, but that they had changed their minds, with the former Wigan and Sunderland boss now conceding defeat in his pursuit of the Scotland international.
"It's dead and buried," Bruce said.
"We got an indication from Blackburn that they were willing to do a deal and that obviously changed in 24 hours. That's their prerogative.
"If they'd have said that to start with - that he wasn't for sale no matter what we wanted to do - then fine, we'll walk away.
"But unfortunately it gets a bit protracted and last weekend we thought it was close and then all of a sudden he's not for sale, so we'll move on to the next one."
- Sports & Recreation