Larry Birkhead has been dropped from a $1.7million deal with OK magazine after allegations that his custody battle with Howard K Stern over daughter Dannielynn was fixed.

OK magazine, which published the first photographs of Larry and Dannielynn together after he was awarded custody in May, was set to print photographs from Dannielynn’s first birthday party next week but now they have backed out of the agreement.

A publicist for the magazine said yesterday: “OK! Magazine has uncovered explosive allegations regarding Larry Birkhead, Howard K. Stern and baby Danielynn, prompting the magazine to cancel our exclusive coverage of Danielynn’s first birthday party.”

“The newly obtained allegations are detailed, shocking and potentially incriminating. It makes it impossible for OK!, in good conscience, to promote this family’s highly questionable relationship in our pages.”

The magazine’s editor-in-chief Sarah Ivens added: “My biggest fear is that Larry and Howard may have tricked us all.”

“It breaks my heart that OK has to pull out of a shoot that would have chronicled the next great chapter of Dannielynn’s life.

The allegations stem from a new book about Dannielynn’s mother, Anna Nicole Smith, called ‘Blonde Ambition’ by Rita Cosby which is due to be released next month. Larry has already pledged to sue Cosby - and his former lawyer Debra Opri because he believes Opri is Cosby’s source.

He told the New York Post: “So I am going to be suing both Debra and Rita Cosby. The bottom line is Rita Cosby needed something to do. She got fired [from MSNBC in 2006], and nobody wanted her.”