20-year-old Baxendale is a product of the Leeds United youth system.
He joined The Whites in 2008 and was a regular in the teams Under-18 side. James failed to gain a professional contract at Elland Road and was released in the summer of 2011.
Baxendale penned his first professional contract with Doncaster Rovers in July 2011, making his debut just a few days later. James failed to make much more of an impact, only managing one more first team appearance for the club.
Following loan spells with Northern Premier League side Buxton and former npower League Two side Hereford United James penned a one year contract at The Banks's Stadium at the beginning of last season.
James had signed an 18-month deal in January however the club have decided to further reward the midfielder with an extended deal.