Assistant manager Olli Huttunen will take over the reins for the Euro 2012 qualifier against tiny San Marino on November 17 at Helsinki's Olympic Stadium. The FA of Finland said on Tuesday that Baxter will play a "consultative" role in preparation for the game.
"We have negotiated in a positive spirit and arrived jointly at the conclusion that this solution is the best alternative in this situation," says FA of Finland President Sauli Niinistö, better known as Speaker of Parliament.
Baxter says the move is a temporary solution aimed at creating a positive atmosphere before the team gets a new long-term manager.
Baxter, who has been the team's manager since February 2008, has become deeply unpopular among Finnish football supporters. Under his watch, the team has slipped from 33rd place to 86th in the FIFA World Rankings.
His contract was extended last year to run through the Euro 2012 qualifying process. In mid-October the FA of Finland said it had confidence in Baxter -- despite the fact that the team lost its first three Euro 2012 qualifiers. Now Baxter says he is looking for another job.
Baxter, a former Dundee United player, has coached the South African national team and the England Under-19 team as well as clubs in Sweden, Norway and Japan.