Suitable position, hot, in French city (5)
I believe the answer is:
niche
'suitable position' is the definition.
(I've seen this in another clue)
'hot in french city' is the wordplay.
'hot' becomes 'h' (common abbreviation eg on taps).
'in' means one lot of letters goes inside another.
'french city' becomes 'Nice' (Nice is a French city).
'h' placed inside 'nice' is 'NICHE'.
(Other definitions for niche that I've seen before include "small specialised market" , "Shallow recess in a wall" , "Suitable location" , "Suitable spot" , "hole" .)