An agreement between two men claiming to be the father of Anna Nicole Smith's baby would be for the best, the sister of one said in a New York interview.

Howard K. Stern, Smith's companion, and Larry Birkhead, Smith's ex-lover, both claim to be the father of 5-month-old Dannielynn. Paternity and custody papers have been filed in both California and Bahamian courts.

"The best case scenario moving forward would be that Howard and Larry Birkhead come to a mutual resolve," Bonnie Stern, Howard's sister, said during an interview Monday on "Inside Edition."

Birkhead's lawyer, Debra Opri, speaking with "Inside Edition," denied reports of an alleged deal between her client and Stern.

"I will not allow a child to be used as a bargaining chip," Opri said.

Bonnie Stern said she was concerned about her brother immediately following Smith's death Feb. 8.

"Dannielynn was the one thing that brought him back to life," she said. "If it wasn't for (Dannielynn), I don't know if my brother would be here today."

Regarding Virgie Arthur, Smith's estranged mother, Bonnie Stern said, she should return to Texas "where she belongs."