Native American dog taken out with the cat, possibly? (7)
I believe the answer is:
choctaw
'native american' is the definition.
(I've seen this before)
'dog taken out with the cat possibly?' is the wordplay.
'dog' becomes 'chow' (short for chow chow).
'taken out with' is an insertion indicator (outwith means on the outside of).
'possibly?' is an anagram indicator (I've seen 'possibly' mean this).
'cat' anagrammed gives 'cta'.
'chow' enclosing 'cta' is 'CHOCTAW'.
(Other definitions for choctaw that I've seen before include "Native American - skating movement - cat chow (anag)" , "figure-skating manoeuvre" , "skating move" , "Tribe living in Mississippi, co-watch (anag.)" , "North American Indian" .)