After Birmingham agreed a £6million fee with Tottenham Hotspur to sign Mido, the player couldn't agree terms with the Premiership newly-promoted side and thus, the deal fell through.
However, Bruce said Birmingham are still in need of the former Ajax and Marseille hitman.
"To be fair to the player it was never really about personal terms, it was issues over lengths of contracts and one or two other things," the 46-year-old coach told Sky Sports News.
"It's still there, we still hope we can do something with the boy. We've been patient, we've gone back to the drawing board and tried again and we'll see."
It remains to be seen whether Birmingham can head the queue for Mido's signature, as Sunderland have made an official bid to acquire his services.
"He is a player I would like to speak to and to bring to this club. Trying to get these sorts of quality players is a challenge," Sunderland manager Roy Keane said on Monday.
"All I want is the opportunity to speak to the lad. If it doesn't work out then we will move on."