Planning can often be simplified by decomposing the task into smaller tasks arranged hierarchically. Charlin et al. [4] recently showed that the hierarchy discovery problem can be framed as a non-convex optimization problem. However, the inherent computational difficulty of solving such an optimization problem makes it hard to scale to realworld problems. In another line of research, Toussaint et al. [18] developed a method to solve planning problems by maximumlikelihood estimation. In this paper, we show how the hierarchy discovery problem in partially observable domains can be tackled using a similar maximum likelihood approach. Our technique first transforms the problem into a dynamic Bayesian network through which a hierarchical structure can naturally be discovered while optimizing the policy. Experimental results demonstrate that this approach scales better than previous techniques based on non-convex optimization.