My husband fathered a child with another woman and she does not want the baby. She is do in two months and wants my husband and I to take the baby. Can she terminate her parental rights and give the baby to us?

Nobody terminates her rights. She signs the appropriate legal papers which allow your husband (and you) to adopt the child. Children are not puppies; you don't "give" them to anyone.

She could also give your husband custody BUT in that event she can file to get custody away from him at any time.

You need to speak to an Attorney. Minimally you need DNA testing to make certain this is his child. He obviously cannot adopt without the consent of the birth father - and maybe it's not him.

You will hire an attorney, the attorney will set up paper work to file to give your husband custody of the child. Then he will file to allow you to adopt the child. At that point in the adoption paper work she will sign over her rights to allow the adoption