That's back in record new line in the city (7)
I believe the answer is:
leipzig
'line in the city' is the definition.
'Leipzig' can be an answer for 'city' (Leipzig is an example). I'm unsure of the 'line in the' bit.
'that's back in record new' is the wordplay.
'that's' becomes 'ie'.
'back' is a reversal indicator.
'in' means one lot of letters goes inside another.
'record' becomes 'LP' (abbreviation for long play record).
'new' becomes 'zig' (I am not sure about this - if you are sure you should give a lot more credence to this answer).
'ie' written backwards gives 'ei'.
'ei' put within 'lp' is 'leip'.
'leip'+'zig'='LEIPZIG'
Can you help me to learn more?
(Other definitions for leipzig that I've seen before include "City in Germany, Wagner's birthplace" , "Industrial city of eastern Germany" , "German city" , "Populous city in Saxony, Germany" , "City in Saxony - Wagner's birthplace" .)