Naval icebreaker in Spanish city (8)
I believe the answer is:
valencia
This clue is a double definition.
'naval icebreaker' is the first definition.
(naval + ice 'broken' can make valencia)
'spanish city' is the second definition.
(I've seen this before)
'in' is the link.
(Other definitions for valencia that I've seen before include "Spanish port" , "European city" , "European area" , "somewhere in Spain)" , "city in Spain?" .)