Reports emerged on Thursday morning that Baxter had put pen to paper with the South African Football Association (Safa) to fill the void left by Shakes Mashaba in December 2016.
Mashaba was shown the exit door by the country's FA after being found guilty of gross misconduct and insurbodination among other charges.
Baxter will return to the position he held between 2004 and 2005, but is he the right man to bring back the old good days? Vote in our poll below.
The 63-year-old's mandate will be to help Bafana qualify for the 2019 Africa Cup of Nations tournament. Bafana's first qualification match will be in June this year away to Nigeria.
Baxter will also be expected to qualify for the 2018 Fifa World Cup in Russia. Bafana are currently placed second in Group D with four points from their opening two matches.