The custody dispute over Anna Nicole Smith’s baby enters its next round Friday when a judge plans to discuss who will raise the infant after DNA tests showed Larry Birkhead is her biological father.

Howard K. Stern, who has been caring for baby Dannielynn since Smith’s sudden death in February, said Tuesday he wouldn’t fight for custody, but a lawyer for Smith’s mother, Virgie Arthur, indicated she might.

Stern said he loved the baby despite the DNA results and would support Birkhead.

“I’m ...