The most common and most likely answer to this crossword clue is the 7 letter word FORMOSA
I've seen this crossword clue in The Times
F
O
R
M
O
S
A
More clues leading to the result FORMOSA
- Island previously to get motorway round it
- Doctor boarding for South Africa and island republic
- Sailor sitting in first class in Taiwan once
- Island ceremony needing very large area
- Doctor’s admitted favouring South Africa’s old detached area
- Not against money order to South Africa or Taiwan once
- Orders to arrest old associate in historical Asian island
Buddy explains!

The straight part
We know that "Island previously" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case island previously = formosa.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.