Asian deity taken in lives with priest (7)
I believe the answer is:
israeli
'asian' is the definition.
(Israeli is an example)
'deity taken in lives with priest' is the wordplay.
'deity' becomes 'ra' (Ra is an example).
'taken in' indicates putting letters inside.
'lives' becomes 'is' ('be' can be a synonym of 'live').
'with' says to put letters next to each other.
'priest' becomes 'eli' (biblical figure).
'is'+'eli'='iseli'
'ra' put within 'iseli' is 'ISRAELI'.
(Other definitions for israeli that I've seen before include "... coming from neighbouring [TO EGYPT] country" , "From Jaffa, perhaps?" , "See member of modern state" , "Haifa native" , "Relating to a Mediterranean nation" .)