The animal is on the loose after escaping from a sanctuary after strong winds brought down fencing.
Thames Valley Police texted residents in parts of Berkshire, warning them about the escaped animal and children are being kept inside schools.
The animal is thought to have fled from the Wolf Conservation Trust's site in Beenham at about 8am this morning.
Officers say they have sight of the wolf and are working with staff from the sanctuary to detain it.
Local school, Beenham Primary, tweeted: "Thank you @TVP_WestBerks for keeping us updated this morning on the escaped wolf.
"We love having the wolf sanctuary as neighbours and hope this beautiful creature is returned safely soon."
Officers are advising members of the public not to approach the wolf if they see it.
The sanctuary, established in 1995, has 10 wolves, living in four packs, from the Arctic and Northwestern breeds.