False reports about cat in French city (7)
I believe the answer is:
limoges
'french city' is the definition.
(I've seen this before)
'false reports about cat' is the wordplay.
'false reports' becomes 'lies' (a lie is false information).
'about' is an insertion indicator.
'cat' becomes 'mog' (informal British term).
'lies' placed around 'mog' is 'LIMOGES'.
'in' is the link.
(Other definitions for limoges that I've seen before include "French porcelain centre" , "foreign city" , "French city noted for enamels and porcelain" , "French commune" , "French city known for its porcelain" .)