University seen to spread outside and develop (5)
I believe the answer is:
ensue
'develop' is the definition.
(thesaurus)
'university seen to spread outside' is the wordplay.
'university' becomes 'U' (abbreviation for university).
'to spread' is an anagram indicator.
'outside' is an insertion indicator.
'seen' with letters rearranged gives 'ense'.
'u' placed within 'ense' is 'ENSUE'.
'and' acts as a link.
(Other definitions for ensue that I've seen before include "Come next" , "Result in a particular way" , "Occur as a result (of)" , "Proceed" , "Befall" .)