Neighbourhood surrounding Newcastle's first stadium (5)
I believe the answer is:
arena
'stadium' is the definition.
(eg a sports arena)
'neighbourhood surrounding newcastle's first' is the wordplay.
'neighbourhood' becomes 'area' (a neighbourhood is an urban area).
'surrounding' indicates putting letters inside.
'newcastle's first' becomes 'n' (1st letter of 'newcastle').
'area' enclosing 'n' is 'ARENA'.
(Other definitions for arena that I've seen before include "Place of combat" , "Circus ring" , "Cheap Prom tickets" , "Area of combat" , "Where one may find sportsmen" .)