Retire from position at last, occupying Italian city (4,2)
I believe the answer is:
turn in
'retire' is the definition.
(turn in can mean to retire or go to bed)
'position at last occupying italian city' is the wordplay.
'at last' indicates one should take the final letters.
'occupying' is an insertion indicator (inserted letters occupy or enter the word).
'italian city' becomes 'turin' (Turin is a city in Italy).
The final letter of 'position' is 'n'.
'n' placed inside 'turin' is 'TURN-IN'.
'from' is the link.
(Other definitions for turn in that I've seen before include "Hit the hay" , "Prepare for sleep" , "Go to bed, changing direction" , "rat on" , "Informally, go to bed or hand over" .)