xen and qemu virtuallization has this problem alot. SELinux requires that images used by xen be labeled xen_image_t, and images used by qemu/libvirt be labeled virt_image_t. virt_manager currently does not do this by default and it creates the images in the current directory by default, which I hope they change. However there are directories where the image files will automatically get the correct label.
Fox xen we have the labeling
With /var/lib/xen/images the preferred location
If you don't have a /xen directory, you need to create it and then reset the labeling.
# mkdir /xen
# restorecon /xen
For qemu/libvirt we have the labeling
If you were to store the xen images somewhere else, you would need to set up the labeling to that place. SELinux uses regular expressions to map files to file context so at the end of the directory specification you need to add (/.*)? which tells SELinux to label everything labeled in the directory and its subdirectories xen_image_t.
# semanage fcontext -a -t xen_image_t 'PATHTOIMAGEDIR(/.*)?'
# restorecon -R -V PATHTOIMAGEDIR
Note: If you are creating a whole new directory structure, you make need to label the entire directory tree xen_image_t. SELinux requires that a confined domain be able to list all directories in the path of the image. New directories created in / get either labeled default_t or root_t, default_t directories are not usually allowed to be searched. If you create the image in a directory tree that xen or virt are not allowed to list, you might need to build some custom policy.
If you were to store your xen images in /myxen/images/
You would execute
# semanage fcontext -a -t xen_image_t '/myxen(/.*)?'
# restorecon -R -V /myxen
You would do the same for libvirt/qemu except use virt_image_t.