Divided city of Cyprus (7)
I believe the answer is:
nicosia
'divided city of cyprus' is the definition.
(I've seen this before)
This is all the clue.
(Other definitions for nicosia that I've seen before include "Casino I visit in Cyprus" , "Divided Cypriot city" , "Mediterranean city" , "Divided Cypriot capital" , "Divided city of Cyprus" .)