Old Spanish chap embraces leader from Italy (6)
I believe the answer is:
senior
'old' is the definition.
(I know that old can be written as senior)
'spanish chap embraces leader from italy' is the wordplay.
'spanish chap' becomes 'senor' (I've seen this before).
'embraces' is an insertion indicator.
'leader from' indicates taking the first letters (I've seen 'leaders from' mean this).
The first letter of 'italy' is 'i'.
'senor' going around 'i' is 'SENIOR'.
(Other definitions for senior that I've seen before include "'Older, superior (6)'" , "More advanced in years or authority" , "Older in years or higher in rank" , "Older or higher in standing" , "High in rank" .)