Island in the mid-Atlantic, a prison (5)
I believe the answer is:
capri
'island' is the definition.
(Italian island)
'in the mid-atlantic a prison' is the wordplay.
'in' says the answer is hidden in the clue.
'CAPRI' is hidden in the letters of 'mid atlantic a prison'.
(Other definitions for capri that I've seen before include "Island near Naples" , "Mediterranean island" , "I carp about the island" , "popular resort" , "Location for holiday" .)