Substitute one fabric with another (7)
I believe the answer is:
replace
'substitute' is the definition.
(I know that substitute can be written as replace)
'one fabric with another' is the wordplay.
'one fabric' becomes 'place' (I can't justify this - if you can you should believe this answer much more).
'with' says to put letters next to each other.
'another' becomes 're' (I've seen this in other clues).
'place' put after 're' is 'REPLACE'.
Can you help me to learn more?
(Other definitions for replace that I've seen before include "Put back in original position" , "Provide a substitute for" , "succeed" , "Substitute, supersede" , "Substitute, supplant" .)