The 57-year-old met with the new owners Nassef Sawiris and Wes Edens on Wednesday and has been given their full support.
Thierry Henry had been linked with Bruce's job following Sawiris and Edens' investment of £35million for 55 per cent of the club.
But after talks at the club's training ground - less than two weeks before the start of the season - Bruce will remain in charge of the Sky Bet Championship side.
He said he was "absolutely delighted" when asked about staying as he arrived for Villa's 3-1 friendly defeat to West Ham.
Bruce opted not to speak to the media after the game but Hammers winger Robert Snodgrass, who spent last season on loan at Villa, believes keeping him is the right call.
"He was in line for the England job so how can anyone question him? He's a top man and a top manager. It's good news they've decided to keep him on," said Snodgrass, who also worked under Bruce at Hull.
"I loved the players, staff, city. The club deserves to be back in the Premier League and Steve Bruce has come under a lot of pressure recently.
"But you tell me a manager who loses his mum and dad and is back on the touchline as if nothing has happened.
"It shows his character. He is a top manager."
Snodgrass scored a late third in West Ham's win at Walsall after Michail Antonio and Marco Arnautovic netted before Andre Green's consolation for Villa.
Just hours earlier the club had announced Bruce would stay on at Villa Park.
A club statement read: "Aston Villa can confirm manager Steve Bruce has met majority owners Nassef Sawiris and Wes Edens and will continue as manager with their full support."
Executive chairman Sawiris and co-chairman Eden bought 55 per cent of the club from Tony Xia, who remains co-chairman, last week.
Villa were in desperate need of investment after losing the Sky Bet Championship play-off final 1-0 to Fulham in May.
Sawiris told the club's official site: "(We're here to) support the club and bring the club back to its original glory.
"I can't emphasise strongly enough how proud we are and grateful to be part of this great club."
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