Stay with American writer in South Dakota (7)
I believe the answer is:
suspend
'stay' is the definition.
(I've seen this before)
'american writer in south dakota' is the wordplay.
'american' becomes 'us'.
'writer' becomes 'pen' (I've seen this before).
'in' indicates putting letters inside.
'south dakota' becomes 'sd'.
'us'+'pen'='uspen'
'uspen' going within 'sd' is 'SUSPEND'.
'with' is the link.
(Other definitions for suspend that I've seen before include "Hang - discontinue" , "Hang freely" , "Put in abeyance" , "Keep in abeyance" , "Bar temporarily" .)