After being told that he was not included in the side for Monday night's game against The Hammers, Butt decided to return home rather than watch the game from the Upton Park stands and the matter was dealt with under the club's disciplinary procedure on Tuesday.
"It was unfortunate but it was all dealt with the day after," Bruce told Sky Sports news.
"He's apologized. It was out of character for someone like him and as far I'm concerned the issue is finished.
"He's in the squad for Sunday and he'll have a role to play, that's for sure.
"He's admitted that he was wrong and it takes a man to apologize."
Bruce's squad will also be boosted by the return from suspension of midfielder Damien Johnson and striker Emile Heskey.
David Dunn has returned to training and is rated at 50/50 as are Matty Upson and Kenny Cunningham who are both struggling to shake off groin injuries.
Recent signing Martin Latka will available but DJ Campbell is cup-tied and will play no part.