Work out around American city (7)

I believe the answer is:

seattle

I'm a little stuck... Click here to teach me more about this clue!

'american city' is the definition.
(I've seen this before)

I cannot understand how the remainder of the clue works.

(Other definitions for seattle that I've seen before include "city in north-west America" , "American city" , "Place in Washington" , "Washington port" , "Sleepless in --, film" .)

I've seen this clue in The Independent.

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