Extends contract and steps down (7)
I believe the answer is:
resigns
'steps down' is the definition.
(resigning is a kind of stepping down)
'extends contract' is the wordplay.
I cannot quite see how this works, but
'contract' could be 'sign' (signing is a kind of contracting) and 'sign' is located in the answer.
The remaining letters 'res' is a valid word which might be clued in a way I don't see.
This may be the basis of the clue (or it may be nonsense).
'and' acts as a link.
Can you help me to learn more?
(Other definitions for resigns that I've seen before include "does the honourable thing" , "Gives up (a post)" , "abdicates" , "Leaves job voluntarily" .)