Having been through this (my wife has had a child from a play partner) , it was difficult to accept at first. When our son arrived, I grew to love him just like my other children. This was a difficult time for us, but we got through it.
We did tell the father. He really didn't want to have anything to do with this situation. I do worry that he will come back one day and want to be a part of his life. But if that happens, I know that I will always be "daddy".