Dismissed story, including new sketch (7)
I believe the answer is:
outline
'sketch' is the definition.
('outline' can be a synonym of 'sketch')
'dismissed story including new' is the wordplay.
'dismissed' becomes 'out' (I've seen this before**).
'story' becomes 'lie' (I've seen this before).
'including' indicates putting letters inside.
'new' becomes 'n'.
'lie' placed around 'n' is 'line'.
'out'+'line'='OUTLINE'
(Other definitions for outline that I've seen before include "Plan with little detail" , "Possibly tracing" , "Sketchy plan" , "Sketch, delineate" , "General plan; sketch" .)