وَحَدَّثَنِي مَالِكٌ، أَنَّهُ بَلَغَهُ عَنْ فَضَالَةَ بْنِ عُبَيْدٍ الأَنْصَارِيِّ، وَكَانَ، مِنْ أَصْحَابِ رَسُولِ اللَّهِ صلى الله عليه وسلم أَنَّهُ سُئِلَ عَنِ الرَّجُلِ تَكُونُ عَلَيْهِ رَقَبَةٌ هَلْ يَجُوزُ لَهُ أَنْ يُعْتِقَ وَلَدَ زِنًا قَالَ نَعَمْ ذَلِكَ يُجْزِئُ عَنْهُ ‏.‏

Malik related to me that he had heard that Fadala ibn Ubayd al-Ansari who was one of the companions of the Messenger of Allah, mayAllah bless him and grant him peace, was asked whether it waspermissible for a man who had to free a slave to free an illegitimatechild. He said, "Yes, That will give satisfaction for him." Translation Not Available

Book Ref: Muwatta Imam Malik Book 38 Hadith 1476
Web Ref:  Muwatta Imam Malik Book 38 Hadith 11