Galactic Maps(which is canon) states that Mortis itself is in Wild Space, but that doesn't exactly mesh with Father saying that he and his children "withdrew from the temporal world" and went to Mortis, so... /shrug
But like DarthAnt said: we do know that the Mortis Monolith(the gateway to Mortis itself) was deep in the Chrelythiumn system -- which is in Wild Space.
The overt implication is that Mortis is removed from the material world/realm, yes... Especially given the revelation of TWBW and its apparent link to the 'Mortis Gods'.
As mentioned, the Galactic Maps guide states that Mortis itself is in Wild Space, but I'm sure most would agree that Mortis residing in 'normal space' doesn't exactly mesh with the source material.