Story just in Scandinavian folk literature initially remains alongside novel (9)
I believe the answer is:
newsflash
'story just in' is the definition.
'scandinavian folk literature initially remains alongside novel' is the wordplay.
'initially' says to take the initial letters.
'remains' becomes 'ash' (remains of a fire).
'alongside' is a charade indicator (letters next to each other).
'novel' becomes 'new' (synonyms).
The initial letters of 'scandinavian folk literature' is 'sfl'.
'sfl'+'ash'='sflash'
'sflash' put after 'new' is 'NEWSFLASH'.
(Other definitions for newsflash that I've seen before include "Brief report" , "Dramatic announcement" , "Bulletin" .)