***UPDATE 8:44PM*** The AP has confirmed that Levi Johnston and Bristol Palin have broken up:
* * * * *
WASILLA, Alaska -- Levi Johnston and Bristol Palin, the teenage daughter of Gov. Sarah Palin, have broken off their engagement, he said Wednesday, about 2 1/2 months after the couple had a baby. Johnston, 19, told The Associated Press that he and 18-year-old Bristol Palin mutually decided "a while ago" to end their relationship. He declined to elaborate as he stood outside his family's home in Wasilla, about 40 miles north of Anchorage.
He also said some details of the breakup, rumors of which had been swirling on the Internet, were inaccurate.
Bristol Palin said in a statement that she was devastated about a report on Star magazine's Web site that quoted Levi's sister, Mercede, as saying Bristol "makes it nearly impossible" to visit the teenagers' infant son, Tripp. The baby was born Dec. 27.
"Unfortunately, my family has seen many people say and do many things to `cash in' on the Palin name," said the statement, which was issued through the governor's political action committee. "Sometimes that greed clouds good judgment and the truth."
SarahPAC spokeswoman Meghan Stapleton did not immediately respond to calls seeking further information. The governor's spokesman, Bill McAllister, declined comment.
Sarah Palin revealed her daughter's pregnancy just days after being named John McCain's running mate on the Republican presidential ticket. She had said in December that her daughter and Johnston "are committed to accomplish what millions of other young parents have accomplished, to provide a loving and secure environment for their child."
In an interview that aired on Fox News last month, Bristol Palin said her fiance saw the baby every day and described him as a "hands-on" dad.
Johnston and Palin had said they were considering a summer wedding.
"We both love each other," he told the AP in October. "We both want to marry each other. And that's what we are going to do."
* * * * *
Gov. Sarah Palin's office on Wednesday refused to comment on a report that Palin's daughter Bristol Palin had broken off her engagement with fiancé Levi Johnston.
According to Star magazine, 18-year-old Bristol Palin and Johnston are no longer together:
Now's Levi's sister, Mercede is telling all exclusively to Star and the picture she paints of life in Wasilla, Alaska is not a pretty one. Bristol, 18, has virtually cut Levi out of the life of their two-month-old son Tripp.
"Levi tries to visit Tripp every single day, but Bristol makes it nearly impossible. She tells him he can't take the baby to our house because she doesn't want him around 'white trash'!" Bristol won't even allow him to watch the baby for a few hours -- unless he's babysitting!
Mercede also told Star: "Bristol's just crazy. That's the nicest way I can put it. She and Levi actually broke up a while ago!"
"That's not state business," Abbey Bulawa, an aide to Gov. Palin, told the Huffington Post. "We don't comment on the governor's children."
In an interview last month with FOX's Greta Van Susteren, Bristol said Levi is "a hands-on dad" who sees his son every day. She also said they planned to get married once they were done with school.
Palin's son Tripp was born on December 29, 2008.
A breakup would be additionally unfortunate for Levi as he has "Bristol" tattooed on his ring finger.