OK! Magazine cancels $1.7m deal with Larry Birkhead

American magazine OK! has made the shock decision to drop Anna Nicole's ex Larry Birkhead from a $US1.7 million deal, alleging he has "tricked us all".

The publication today it has cancelled the arrangement, which involved getting exclusive access to Larry and Dannielynn, his daughter with the late Anna Nicole.

The American version of OK! magazine printed the first pictures of Larry Birkhead
with his daughter

It has long promoted its relationship with the photographer - it printed the first pictures of the two after DNA results confirmed his paternity - and was scheduled to cover the toddler's first birthday.

The magazine has not revealed the exact reason for the decision, however it is reported to be based on rumours Birkhead struck a "backroom deal" with Howard K Stern, his supposed long-standing rival.

The magazine's publicist said: "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."

Both were locked in a paternity battle over the child before DNA tests claimed to prove Birkhead as the father following the death of Anna Nicole.