This is according to the British tactician's agent Steve Kapeluschnik, who revealed that the accomplished coach is currently on Holiday in Sweden.
The Chiefs coaching job is currently vacant with Steve Komphela having resigned as the club's head coach towards the end of the 2017/18 season.
The SowetanLive source close to Baxter‚ also a Safa insider‚ who spoke on condition of anonymity‚ stated that they had heard Baxter would return to Chiefs.
“I heard the same thing. But I am not sure if he has signed a contract yet," a source said.
Kapeluschnik dismissed reports indicating that they have held talks with Chiefs on behalf of his client, but also added that in football “things change quickly”.
“I would have to deny that. I mean I haven’t spoken to any clubs about Stuart. And I had a long conversation with him – he was in Sweden – yesterday," Kapeluschnik told the publication.
“I think in the middle of July. But I haven’t spoken to Chiefs. I really haven’t," he continued.
“But you know football – things change quickly. And I’ve also heard rumours. But honestly I haven’t met anybody or spoken to anybody and that’s where it is," he said.
Meanwhile, South African Football Association (Safa) communications manager Dominic Chimhavi insisted that they are surprised to hear that Baxter could soon rejoin Amakhosi.
“Stuart Baxter has a standing contract with Safa and we do not believe that he would go behind out backs and communicate with someone else. This is all very puzzling‚” Chimhavi said.
Baxter enjoyed a lot of success as Chiefs coach between 2012 and 2015 - winning four major trophies with the Soweto giants.
The well-travelled trainer left the club at the end of the 2014/15 season after deciding not to extend his contract with Amakhosi having attracted interest from Turkish Ligue 1 side Gençlerbirliği.
Baxter returned to South Africa after he was fired by Gençlerbirliği in 2015 and took charge of SuperSport United, before joining Bafana as head coach last year.