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This is just my general understanding, but unless the ex-sister-in-law had this baby with your brother, then I don't think you would be considered a kinship to outweigh the uncle if he is giving the baby a stable home life already and is willing to fight for her. If the mother is this desperate to sign the rights over to you, please proceed with extreme caution, she probably thinks she can control you (like she sort of is right now by dangling this baby over your head) and so she will think she can still call the shots and be mom-from-a-distance, maybe even come get the baby back whenever she feels like it. If the child has already been taken by CPS for drug usage, depending on the county and case file on her, she may not even be able to sign anything over to you.
We were told to never try to make private arrangements to have birth parents sever their parental rights, and that it was a matter for the laywers and CPS to deal with, so I hope she's not trying to drag you guys through the ringer. If CPS is going for termination, then the smart course is to take the classes, get licesnsed now, and let CPS know that you have a distant connection to the baby and would be interested in adopting her. Be careful and good luck.