"Suitcase murderer" farewells her baby as she prepares to serve the rest of her sentence.

The baby of Heather Mack, the American woman who murdered her mother and stuffed her body into a suitcase in Bali in 2014, will be cared for by an Australian-Balinese woman while Mack serves out the remainder of her sentence.

The Daily Telegraph reports Oshar Putu Melody Suartama will care for two-year-old Stella after the toddler grew too old to live in Kerobokan prison with her mother.

It’s believed Ms. Suartama befriended a then-pregnant Mack when she was working at Denpasar police station to help foreigners with translations.

According to The Daily Telegraph, Ms. Suartama is married to a Balinese man, has two children of her own and will take Stella to visit her mother about once a week.

The news comes after Stella’s grandmother living in the US had her last-minute bid to secure custody of her granddaughter rejected.

In 2014, together with her boyfriend Tommy Schaefer, Heather Mack killed her 62-year-old mother Sheila von Wiese-Mack while they were on holiday in Bali together. At the time, Schaefer was just 21 and Mack, 19.

After killing her, the couple stored a dismembered von Wiese-Mack in a suitcase and tried to flee the country to no avail.

Mack and Schaefer were convicted in April 2015 of her murder and sentenced to prison, with Mack given a 10-year sentence, and Schaefer an 18-year sentence.

While behind bars Mack gave birth to her daughter, Stella, who has lived her first two years of life behind bars.

Just this passing February,  The Chicago Tribune uncovered three videos posted to YouTube by Mack, where the 21-year-old admitted to killing her mother.

Staring straight into the camera, Mack argued that "the truth sets you free" and that she doesn't wish to "live in a lie anymore".

The 21-year-old continued to claim she killed her mother to avenge her father's murder - a murder she claims her mother carried out in an Athens hotel room in 2006.

"Two weeks before I came to Bali, I found out that she killed my father, and I made it up in my heart, in my mind, my soul, in my blood, in the oxygen running through my body, that I wanted to kill my mother," Mack says.

"I got this whole new savage idea in my head that I wanted to kill her in a hotel room, because she had killed my father in a hotel room. We were going to Bali, so I began to plot."

Despite this, Debbie Curran, who is the younger sister of von Wiese-Mack, said her niece's claims were "completely false" and that Sheila von Wiese-Mack was "devastated" by her husband's death.