Tarzan: he reshaped Israeli city (8)
I believe the answer is:
nazareth
'israeli city' is the definition.
(I've seen this before)
'tarzan he reshaped' is the wordplay.
'reshaped' indicates anagramming the letters.
'tarzan'+'he'='tarzanhe'
'tarzanhe' is an anagram of 'NAZARETH'.
(Other definitions for nazareth that I've seen before include "Town where Jesus grew up" , "Biblical city" , "Childhood home of Jesus" , "place of pilgrimage!" , "Biblical town" .)