The Premier League club made an offer of around £8m for the Scotland international last week, but they failed with their attempt to bring him to the KC Stadium.
However, after putting in a second bid, Bruce remains hopeful that the Tigers can land the 24-year-old before transfer deadline day.
"It's something that we're trying to progress if that's possible. It's always difficult when you're talking about other people's players but there has been a bid lodged," he told Sky Sports News.
"I believe the first bid was refused but I do believe the two clubs are still talking."
Rhodes scored 25 goals for Blackburn last season.