SuperSport United recently gave permission for their coach Baxter to talk to SAFA about the position, which was vacated in December with the sacking of Shakes Mashaba.
However, Matsatsantsa made it clear they will not release the Brit before the end of the season, should he decide to succeed Mashaba.
Baxter's agent Steve Kapeluschnik says: "Everything is progressing nicely. But you must remember it's a process, it takes time."
Nedbank Cup champions SuperSport advanced to the quarter-finals of the competition last night with a 2-0 victory over KwaDukuza United at Sugar Ray Xulu Stadium.