Observed envoy on vacation with newsman (4)
I believe the answer is:
eyed
'observed' is the definition.
(I've seen this before)
'envoy on vacation with newsman' is the wordplay.
'on vacation' means to remove the middle letters.
'with' says to put letters next to each other.
'newsman' becomes 'ed'.
'envoy' with its middle taken out is 'ey'.
'ey'+'ed'='EYED'
(Other definitions for eyed that I've seen before include "Vegetable" , "Closely observed" , "Ogled" , "Saw" , "Looked at, warily perhaps" .)