Said to be the most awful sausage! (5)
I believe the answer is:
wurst
'sausage' is the definition.
(I have seen 'German sausage' mean 'wurst' so perhaps 'sausage' could also mean 'wurst')
'said to be the most awful' is the wordplay.
'said to be' shows a homophone (sound like).
'the most awful' becomes 'worst' (I've seen this in another clue).
'worst' sounds like 'WURST'.
(Other definitions for wurst that I've seen before include "Large German or Austrian sausage" , "Banger" , "fare from Berlin" .)