Jordan said today Saddam's eldest daughter and her children were guests of the royal family and did not engage in any political activities.
Iraq yesterday put Raghd on the 41 "most wanted" list - along with her mother Sajida and top Baathists and al-Qaeda leaders - and accused her of using millions stolen by the former Iraqi leader to finance Sunni insurgents.
Jordanian Prime Minister Marouf Bakheet was quoted in local papers as saying Raghd, who had been granted asylum by King Abdullah in 2003 after she fled with her sister to Jordan after the US invasion of Iraq, was living in Jordan for "humanitarian reasons."
"She does not engage in any political or media activities. Mrs Raghd Saddam and her children are guests of the Hashemites," Bakheet said.
A palace official said the asylum offer by the pro-Western monarch was a traditional gesture of Arab hospitality.
Raghd has taken a leading role in organising her father's legal defence in his trial for crimes against humanity. But officials say she had abided by a request not to use Jordan as a platform to make political statements to the media.
Iraq's national security adviser, who disclosed the list in a televised news conference, declined to say if arrest warrants had been issued for Raghd and her mother but said Interpol had received the list.
Jordan confirmed it had not received any formal request but stressed that any request had to be based on "legal grounds" - but that Amman reserved the right to take a decision that was "in its national interests".