Ridley is out-of-contract at Glanford Park, and has been offered deals to join the Robins as well as League Two side Bradford.
He has the option of staying put, but has suggested he will leave his hometown team to guarantee first-team football.
Baker told the Gloucestershire Echo: "We have offered him what he is asking for, so it's a decision for him about whether he wants to move 200 miles to play here.
"Bradford want him, but we can offer him League One football, compared to League Two.
"There is quite a lot of money available for wages. Players on reasonable money have gone, and there is also some money from Kayode Odejayi's transfer and the Bristol Rovers deal, so we can offer decent wages."