Both clubs are reportedly looking to sign a loan from the former Ross County man.
Baxter, who counts Solihull Moors among his former clubs, has yet to make a competitive appearance for Frank Lampard’s side.
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He is, however, rising through the ranks with his performances for Yeovil Town in Ligue 2 last season, which earned him the Player of the Year award at Huish Park.
And he made the move to the Scottish Premiership with Ross County in 2019-20, making 13 appearances for the Victoria Park side.
Like most Chelsea loan stars, he has considerable experience in the youth ranks of Stamford Bridge and has twice appeared in Europe’s top youth competition, the UEFA Youth League.
Now Chelsea believe the time has come for him to gain some experience in the Championship, according to reports, with two Blues and Derby clubs in need of new stopers.
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Lee Camp and Ben Hamer, who were number 1 in the Blues and Derby for most of the season respectively, have both left the clubs.
At St Andrew’s, Connal Trueman joined AFC Wimbledon on loan, meaning a new goalkeeper is at the top of Aitor Karanka’s transfer wishlist.
The Sun quotes an ‘insider’ at Chelsea who said: ‘This kid has real talent and Derby and Birmingham are both very excited. “