Its chimney is watched for papal news (7,6)

I believe the answer is:

sistine chapel

(Other definitions for sistine chapel that I've seen before include "Part of the Vatican with a Michelangelo ceiling" , "Vatican attraction" , "Religious venue" , "Vatican site of frescoes by Michelangelo" , "Scene of paintings by Michelangelo" .)

I've seen this clue in the USA Today.

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