Baxter, 21 has signed a three year deal (for an undisclosed fee) with the Blades and leaves the Latics after a two yaer spell with the Lancashire club. A former England youth international he made 45 appearances last season and netted 15 goals, a quality which boss David Weir looks to expose.
Blades boss David Weir told sufc.co.uk; "Jose is a player who will get the fans off their seats and I am delighted he has chosen to come to Sheffield United. I have worked with Jose before and know what he can do, so I want to thank the Club for making this move happen."
Meanwhile defender Danny Higginbotham has left Sheffield United by mutual consent and will join non-league side Chester FC (formely City) until the end of the season.