Madge's request for an interim adoption was turned down by a court in the capital Lilongwe earlier this month, and Mercy was sent back to the Kondanai Children's Home, while the singer returned home.
"During her farewell party at the lodge, Madonna instructed a nurse and a nanny to remain behind and care for Mercy while her lawyers appeal," the Daily Star quoted a source as telling Britain's Daily Mirror.
The singer, who is appealing against the adoption ruling, made sure provisions were in place to extend her care to the child, according to orphanage director Anne Chikhwaza.
"As Mercy's legal guardian, I authorise where she goes. She is staying with Madonna's people as a visitor. There is nothing wrong with that," Chikhwaza said.
Madonna's appeal on the adoption bid is set to be heard in an African court on May 4. (ANI)