Blake has found regular first-team football hard to come by at the Reebok Stadium since switching from Burnley in the summer, making just three starts in 12 appearances for the club.
Coyle told the Bolton News: "I didn't want him (Blake) going out on loan. I made him aware that numerous clubs had asked about him and the biggest one was Norwich.
"Robbie is an integral part of the group and he wants to stay and fight for his place. That's brilliant because he is a big part of what we are doing at the club.
"There wouldn't be a problem if I played Robbie Blake from the start because he is terrific. But we have real competition for places in the forward areas. I was delighted with his answer that he wants to stay and battle for his place. He is loving his time at Bolton."