The 26-year-old was brought back to Everton last year, initially to work with Everton In The Community but then to try and relaunch his stalled career by playing in the Blues' reserve setup.
At one stage regarded as the next big thing off the Blues' production line, Baxter's career failed to ignite at Goodison Park in the way he would have hoped and he was released by the club in 2012.
He signed for Oldham Athletic before spending three years with Sheffield United but problems with drugs eventually led to him being banned from football for a year in 2016.
Seemingly having seized the chance to take stock with Everton's support, Baxter is now bidding to rebuild his career with Oldham. He signs a one-year deal with the Latics, with the option to extend it by another season if all goes well for him at Boundary Park.