The teenager's current one-month loan deal is set to expire next week but, after a series of bright performances that have already yielded two goals, Parry is keen to keep the Everton player for a while longer.
Parry said: "I'll be having a word with David (Moyes) this week and seeing what his thoughts are."
However, the Tranmere boss was unsure whether an extension would be agreed: "I think they sent him out purely to get some games under his belt to be ready for them, so whether we're able to keep him is doubtful."
Baxter has impressed at Prenton Park, scoring on his debut against Preston as well as netting in Saturday's win over Oldham.
The 19-year-old's temporary manager praised the talent of his player: "There was one ball he put in and I didn't see him take the slide rule out of his pocket, but he must have done at some point because it was a magnificent ball.
"He can do that, that's his game."
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