Bruce, speaking after his side's goalless draw away to Aston Villa, here Saturday, confirmed the winger would be staying at the JJB Stadium until at least the end of the season.
The Latics boss also confirmed that he was close to signing Newcastle's left-sided winger Charles N'Zogbia after the French player watched his potential new club at Villa Park.
Wigan feared Valencia, who missed Saturday's match because of a hamstring injury, could follow Emile Heskey and Wilson Palacios out of the club during the latest transfer window, which shuts on Monday.
England striker Heskey joined Villa for 3.5 million pounds last week and made his home debut against his former club on Saturday.
Palacios, who followed Bruce from his previous club Birmingham, was sold to Tottenham after Wigan accepted a reported 14 million pounds offer.
"Valencia has turned down an offer from Real Madrid. It only happened on Friday night and it is great news for us," said Bruce.
"He is prepared to stay with us until the end of the season at least, which is fantastic. We have lost Emile and Wilson, and the last thing you want to do is rebuild a team in January. Keeping hold of Antonio was paramount.
"As regards N'Zogbia, we have agreed a fee with Newcastle. There is still a bit to do to get over the line, and we will see what develops."
Bruce admitted Wigan, sixth in the table, had come under intense pressure against Villa and praised his team for their resolute defending.
Villa, who in manager Martin O'Neill's 100th match in charge missed the opportunity to go second, created numerous chances.
"I can't remember being under the cosh like that and getting away with it before," said Bruce.
"You need to have a bit of luck when it is like that and you need your defenders to be brave. But we were terrific in sticking at it. We were out on our feet at the end after the game with Liverpool on Wednesday."
Villa manager O'Neill admitted he was running out of time to bring in a new defender before the transfer window deadline closes in a bid to provide cover for club captain Martin Laursen, who is out for two months with a knee injury.
"I think it's going to be exceptionally difficult now," said O'Neill.
"I enquired about one or two, possibly more in hope than expectation, but I think it's going to be hard."
He added: "I'm going to keep working right the way through until 5pm (1700GMT) on Monday and then breathe a sigh of relief after that, but I'd like to do something."
Villa saw John Carew return against Wigan from a back problem which had ruled the Norwegian international striker out since the draw with Manchester United in mid-November.
"I was pleased to have him back," said O'Neill after Carew's appearance as a second-half substitute.
"He has been out a long time, since playing the last 15 minutes against Manchester United.
"We have done very well indeed since then. But it is good to have him available as another option for what lies ahead."
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