The two countries will battle it out at the Moses Mabhida Stadium in Durban on September 8, 2018 in what will be a top of the table clash for Group E.
Libya top Group on goal difference after having won their opening match against the Seychelles 5-1. South Africa are placed second with three points gained from their 2-0 win over Nigeria.
Baxter named his strongest possible squad as he aims to help Bafana Bafana qualify for Africa's biggest competition for the first time since 2015.
There were no surprises in Baxter's latest squad as he kept faith with the core of the players he selected for previous matches.
Baxter only made seven changes from the previous squad that played a competitive match with Senegal in the 2018 Fifa World Cup qualifiers.
Dino Ndlovu, Siphiwe Tshabalala, Andile Jali, Wayne Sandilands, Lebogang Manyama, Thulani Serero and Phakamani Mahlambi have all been left out of the current squad.
Bidvest Wits duo of Thulani Hlatshwayo and Buhle Mkhwanazi cracked the nod following their scintillating displays so far this season.
Siyanda Xulu has also kept his place having done well for Bafana during the 2018 Cosafa Cup tournament in the Limpopo province.
Bafana will assemble on September 2, before flying to Durban the following day. They will hold their practice sessions at the Princess Magogo Stadium.
The South African Football Association (Safa) confirmed that Bafana will not be involved in any friendly matches during the Fifa international break.
Goalkeepers: Darren Keet, Ronwen Williams, Itumeleng Khune.
Defenders: Siyanda Xulu, Ramahlwe Mphahlele, Motjeka Madisha, Thulani Hlatshwayo, Innocent Maela, Sifiso Hlanti, Buhlebuyeza Mkhwanazi.
Midfielders: Dean Furman, Siphesihle Ndlovu, Hlompho Kekana, Bongani Zungu, Teboho Mokoena, Kamohelo Mokotjo, Sibusiso Vilakazi.
Attackers: Themba Zwane, Keagan Dolly, Percy Tau, Lebo Mothiba, Bradley Grobler.