Mediterranean city is large resort (7)
I believe the answer is:
algiers
'mediterranean city' is the definition.
'Algiers' can be an answer for 'city' (Algiers is an example). I am not sure about the 'mediterranean' bit.
'is large resort' is the wordplay.
'resort' indicates an anagram (re-sort the letters).
'is'+'large'='islarge'
'islarge' anagrammed gives 'ALGIERS'.
Can you help me to learn more?
(Other definitions for algiers that I've seen before include "North African port" , "N. African port" , "NW African capital" , "Capital city" , "North African capital" .)