Possession of wolves in Arizona is prohibited without a permit. They may not be imported or possessed except as otherwise permitted by the Arizona Game and Fish Commission.
Under current Department of Game and Fish policy, any hybrid resulting from the cross of a wolf and a domestic dog is considered a domestic animal and not subject to the Department's jurisdiction.

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The section specifically referring to exotics is the Private Game Farm License, R12-4-413, pg. 116

HYBRIDS The meaning of existing rules with regard to hybrids is subject to policy (and judicial) interpretation. By unwritten policy, AGFC does not consider most interspecific hybrids wildlife. They are not under AGFC jurisdiction, but may be under that of agencies such as county rabies-animal control departments. In contrast, based on the biological definition of"species," progeny from intraspecific cross-breedings (i.e. between conspecific races or subspecies) are not true hybrids and are under AGFC jurisdiction.