Baxter, 20, who is in his second year as a professional with PNE after coming through the club's academy, will stay with the Bower Fold outfit until January.
He was recalled from a loan with Chorley at the end of last week having not made an appearance for the Magpies.
Last season Baxter spent time on loan at Clitheroe.
Stalybridge, managed by former Wigan and Cardiff striker Simon Haworth, play in the Northern Premier League, the same division as Bamber Bridge and Lancaster City.
Last season, they took Ethan Walker and Adam O'Reilly on loan.