Michigan city right to take in alien (7)
I believe the answer is:
detroit
'michigan city' is the definition.
(I've seen this before)
'right to take in alien' is the wordplay.
'right' becomes 'droit' (I've seen this before).
'to take in' is an insertion indicator.
'alien' becomes 'et' (extra terrestrial).
'droit' placed around 'et' is 'DETROIT'.
(Other definitions for detroit that I've seen before include "U.S. city also known as Motown" , "US city associated with automobile production" , "City in Michigan known for motor industry" , "Michigan car city" , "City also called Mo'town in USA" .)