French dramatist has extra setting for story (7)
I believe the answer is:
moliere
'french dramatist' is the definition.
(I've seen this before)
'extra setting for story' is the wordplay.
'extra' becomes 'more' (both can mean additional).
'setting for' means one lot of letters goes inside another (inserted letters are set inside others).
'story' becomes 'lie' (story can mean a fabrication).
'more' enclosing 'lie' is 'MOLIERE'.
'has' acts as a link.
(Other definitions for moliere that I've seen before include "French dramatist" , "17th century French playwright" , "Fr. comic dramatist" , "Fr. dramatist (Tartuffe)" , "French writer" .)