Must agree the dying neon was hazy (2,7)

I believe the answer is:

no denying

I'm a little stuck... Click here to teach me more about this clue!

'hazy' is the definition.
Both the definition and answer are adjectives.
Maybe they are linked in a way I don't understand?

'must agree the dying neon' is the wordplay.
'dying neon' anagrams to 'NO DENYING'.
However, I'm not clear how the anagram is indicated.

'was' is the link.

Can you help me to learn more?

I've seen this clue in the Sydney Morning Herald.

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