OTTAWA, 2009 (AFP) - Parents who took their infant girl off life support after deciding to donate her heart to another ill child were stunned when doctors said she began breathing on her own on Wednesday.

Two-month-old Kaylee Wallace was born with a brain malformation that was expected to prevent her from breathing without medical assistance.

Her parents chose to take her off life support and donate her heart to another severely ill baby at the same Toronto hospital, after learning of the other's plight.

But the Toronto Sick Kids hospital announced Wednesday morning that Kaylee was in stable condition and no longer a transplant candidate, defying doctor's prognoses.

"This is obviously tragic for both of the families," Jim Wright, a hospital doctor, told public broadcaster CBC. "The situation is not resolved for either of these families."

Kaylee's father Jason Wallace told reporters he was prepared to lose his child, whose new prognosis was now uncertain.

"Losing our daughter's okay, I understand that," he said. "But I don't want to lose two."

The month-old baby that was to receive Kaylee's heart also remained in stable condition, said Wright.