Can returning injured ace in Spanish city ... (8)
I believe the answer is:
valencia
'spanish city' is the definition.
(I've seen this before)
'can returning injured ace in' is the wordplay.
'can' becomes 'lav' ('lav' can be a synonym of 'can'**).
'returning' shows that the letters should be reversed in order.
'injured' indicates an anagram.
'lav' back-to-front is 'val'.
'ace'+'in'='acein'
'acein' anagrammed gives 'encia'.
'val'+'encia'='VALENCIA'
(Other definitions for valencia that I've seen before include "Spanish city and region" , "European area" , "European city" , "city in Spain?" , "port in the Med" .)