Did Larry Birkhead Make a Deal with Virgie Arthur?

Custody negotiations over Anna Nicole Smith’s baby daughter Dannielynn intensified behind the scenes as a court confrontation loomed Friday between the late Playboy Playmate’s mother and former boyfriend.

An agreement on joint visitation could avert a closed hearing scheduled for Friday afternoon to decide custody of 7-month-old Dannielynn, who could inherit a fortune from her mother’s estate. Lawyers for Larry Birkhead, who is the baby’s father, and Smith’s mother, Virgie Arthur, met privately on Thursday.

Birkhead, a California photographer who discovered he was the girl’s father when DNA test results were disclosed on Tuesday, said he would not share custody of the baby girl, but hoped to avoid a court dispute. Arthur’s lawyer said she would fight for joint custody if talks fail.

"We intend to proceed on that application unless something else comes along that causes us not to have to take that course of action," attorney Debra Rose said. Arthur says wants access to her granddaughter and believes an agreement was possible with Birkhead, whom she called "a good guy."

A hearing is scheduled for 2:30 PM EDT in the Bahamas, to determine who will get custody of Dannielynn.