The most common and most likely answer to this crossword clue is the 5 letter word SAXON
I've seen this crossword clue in The Guardian
S
A
X
O
N
More clues leading to the result SAXON
- Boy carrying short axe for German once
- Poles on Greek Island confused German
- Number 10, when backing a settler in Britain
- Dismiss boy speaking German
- Old German soprano’s got a bit of a nerve
- Native restraining a cross British invader
- Jazz instrument playing in old English style
- Old German instrument working
Buddy explains!

The straight part
We know that "settler in Britain" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case settler in britain = saxon.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.