Entanglement is one of the most fascinating features arising from quantum-mechanics and of great importance for quantum information science. Of particular interest are so-called hybrid-entangled states which have the intriguing property that they contain entanglement between different degrees of freedom (DOFs). However, most of the current continuous variable systems only exploit one DOF and therefore do not involve such highly complex states. We break this barrier and demonstrate that one can exploit squeezed cylindrically polarized optical modes to generate continuous variable states exhibiting entanglement between the spatial and polarization DOF. We show an experimental realization of these novel kind of states by quantum squeezing an azimuthally polarized mode with the help of a specially tailored photonic crystal fiber.