Blues are still trying to thrash out a deal with Pandiani's Spanish side Deportivo and although Middlesbrough are also rumoured to have entered the race to sign the Uruguyuan striker, Bruce feels that with Pandiani on loan at St Andrew's they are still in the box-seat for his signature on a permanent deal.
"We expected competition. When we signed him we knew he was a quality striker with a proven track record," Bruce told Sky Sports News.
"The good thing for us is that we're in the box-seat, he's here and he's here for the next seven games!
"We'll see what develops over the next six or seven weeks. The first thing we've got to do is agree a deal with Deportivo.
"We have had initial discussions and they'll be ongoing."
Blues are also in a similar position with Pennant. The winger is on a season long loan deal from Arsenal and the Blues boss is keen to tie-up a deal to turn that move into a permanent one also.
"I think we're close to agreeing a deal with Arsenal, which is the most important thing," Bruce told Sky.
"Its then possible to sit down with Jermaine and and his advisors to try and thrash out a deal and let him know we'd like to make the deal permanent.
"The main thing is to fully agree the deal with Arsenal first and then see what develops."