Bruce had hoped to lure the Scotland international to the KC Stadium after selling Shane Long to Premier League rivals Southampton.
The Hull boss revealed that Championship side Blackburn Rovers were initially prepared to allow their prized asset leave the club, but had a change of heart and so Bruce has turned his attention elsewhere.
Palermo striker Abel Hernandez has been strongly linked with a move to Hull and Bruce stated on Tuesday that he is close to adding to his squad, but refused to confirm which player is on the verge of joining.
"Jordan Rhodes is not going to happen. It is disappointing for everyone concerned, but even more disappointing for someone like Jordan," he said.
"We are close to one or two things and are very close to one in particular, which would be a fantastic addition for us if we can pull it off.
"Until it is rubber stamped I don't want to say any more. The deal for Jordan is dead and buried, though.
"We got an indication from Blackburn they were willing to do a deal. That obviously changed within 24 hours and that is their prerogative.
"If they had said at the start that is what they wanted to do we would have walked away, but it got protracted. We thought we were close, then it changed and he wasn't for sale."
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