Baxter previously coached the Chiefs between 2012 and 2015, and won the League title twice with them.
Baxter succeeds, Gavin Hunt, as coach of the team.
Also, Baxter coached the South African national team and was the coach who eliminated Egypt from the round of 16 of the 2019 African Nations Cup.
Kaizer Chiefs qualified for the semi-finals of the African Champions League for the first time in its history, by defeating Simba of Tanzania in the quarter-finals.
The winner of the match between Chiefs and Wydad will face the winner of the other semi-final, which brings together the defending champion Al-Ahly and Tunisias Esperance.