Dr. Tom Pisz, owner of the Great Slave Animal Hospital, said the dog does not have signs of the viral disease.
"It's been exposed to rabies through a rabid fox and because it is a transmittable disease, it must go through quarantine," Pisz said.
Exact details of the case are deemed confidential, he said, however it was determined the dog attacked the fox.
After sending the fox head away for rabies testing, the results came back positive, therefore the dog also had to be tested.
"And the dog's vaccination was overdue a couple of months, so they implemented a quarantine," he said.
Pisz said rabies is a serious disease in the North among wildlife, although not common in domestic animals.
"There were no cases the last several years in Yellowknife."
Transmitted by saliva, Pisz said people are also subject to the slow-forming disease.
"There is no treatment and if you contract the virus you are basically dead," he said.
"We have to wait and see if (the dog) develops the symptoms."
Usually in small communities, dogs suspected of being in contact with rabies will be immediately euthanized.
Recently in a Northern community, an entire dog team was put down because it killed a fox, Pisz said.
"But this dog is a pet dog and the family wants to save him."
Rabies is fully preventable with proper, up-to-date vaccinations, he added.
"If the dog was vaccinated, then quarantine might be reduced to 10 days. It's up to federal veterinarians how long the quarantine is."
Any people around the suspected animal would have to be inoculated for the disease, as well, he said.
Janet Pacey, president of the NWT SPCA, said they have been informed of the quarantine.
"We sent a notice to all our dog walkers. The program isn't cancelled, but we want only people experienced with the disease to go near it."
Dog walkers volunteer to take animals in Great Slave Animal Hospital out for walks.