Council in controversy: no deal (5)
I believe the answer is:
synod
'council' is the definition.
(synod is a kind of council)
'in controversy no deal' is the wordplay.
'in' says the answer is hidden in the clue.
'SYNOD' can be found hidden inside 'controversy no deal'.
(Other definitions for synod that I've seen before include "Ecumenical council" , "Forum for discussing" , "Ecclesiastic council" , "council meeting" , "Ecclesiastical assembly" .)