Chew around centre of schnitzel in German city (6)
I believe the answer is:
munich
'german city' is the definition.
(city in Germany)
'chew around centre of schnitzel' is the wordplay.
'chew' becomes 'munch' (munching is a kind of chewing).
'around' indicates putting letters inside.
'centre of' indicates the central letters.
The middle letter of 'schnitzel' is 'i'.
'munch' enclosing 'i' is 'MUNICH'.
'in' is the link.
(Other definitions for munich that I've seen before include "South German city" , "Capital of Bavaria" , "Largest city of Bavaria" , "foreign city" , "Olympic venue" .)