City in Italy, on Sardinia (5)

I believe the answer is:

lyons

'city' is the definition.
(Lyons is an example)

'in italy on sardinia' is the wordplay.
'in' says the answer is hidden in the clue.
'LYONS' is hidden within 'italy on sardinia'.

(Other definitions for lyons that I've seen before include "Capital of Rhone department of France" , "French city" , "old-world tea shops" , "Famous caterer" , "City of central France" .)

I've seen this clue in The Independent.

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