I HEARD... Howard K. Stern and Larry Birkhead have reached an agreement!

I HEARD Howard K. Stern and Larry Birkhead may have reached an agreement on how to move forward regarding Anna Nicole Smith's estate and custody of her 5-month old daughter, Dannielynn.

Paparazzi are a buzz after claiming they saw Larry Birkhead leaving Smith's controversial compound in the Bahamas where Stern and the baby are staying.

According to reports, Stern may have agreed to give custody of Dannielynn to Birkhead if Stern remains as executor of Smith's possible billion dollar estate.

If Birkhead did infact visit Dannielynn over the weekend, then this would have been the first time the two met.

Birkhead evidently avoided questions regarding the secret meeting in an exclusive interview with Access Hollywood.

This deal could also seperate the men from the boys when trying to determine who is in this for the baby and who is in this for the money.

The alleged agreement doesn't include Smith's estranged mother, Virgie Arthur, who has been wishy washy about whether or not she wants permanent custody of the baby. Arthur originally said she wanted Birkhead, who most expect to be the baby's father, to get custody.  Recently, however, Arthur has thrown her name in the race as Smith's "next of kin."

A paternity test showing that neither Stern nor Birkhead is the father could foil the alleged agreement likely awarding custody to Arthur.