Settlement evasive about extended cut (6)
I believe the answer is:
colony
'settlement' is the definition.
(synonyms)
'evasive about extended cut' is the wordplay.
'evasive' becomes 'coy' (coy can mean shy or evasive).
'about' means one lot of letters goes inside another.
'extended' becomes 'long' (extended can mean longer than usual).
'cut' means to remove the last letter.
'long' with its last letter taken off is 'lon'.
'coy' going around 'lon' is 'COLONY'.
(Other definitions for colony that I've seen before include "Dependency" , "Group of animals or plants living together" , "sort of territory" , "Country under the political control of another and occupied by settlers" , "Country controlled by another's settlers" .)