Greek character forms cuter image (7)
I believe the answer is:
picture
'image' is the definition.
(picture is a kind of image)
'greek character forms cuter' is the wordplay.
'greek character' becomes 'pi' (letter from the Greek alphabet).
'forms' is an anagram indicator.
'cuter' anagrammed gives 'cture'.
'pi'+'cture'='PICTURE'
(Other definitions for picture that I've seen before include "Form a mental image" , "A visual representation" , "Call to mind" , "Imagine; film" , "Portrait; film" .)