What should a father do?

What should a father do? He has a baby daughter living with her grand parents, because her mother died or is not able to take care of her, but is a good mother. The grand parents want to raise there grand daughter with out any finical help of the government or the father. They also want to raise there grand daughter in the same manner as the children of president Obama. They will also allow the father open visitations just like in Italy with out going to court. The name is on the birth certificate but paternity is not legal established, but can do so with the grand parents cooperation.