Gutted semifinal is to be held inside, having played two rounds in European city (4)
I believe the answer is:
oslo
'european city' is the definition.
(capital of Norway)
I cannot understand how the remainder of the clue works.
Can you help me to learn more?
(Other definitions for oslo that I've seen before include "Scandinavian capital" , "Capital of Norway" , "European capital city (found in Czechoslovakia!)" , "It's capital in Anglos London" , "Capital city, called Kristiania until 1924" .)