The most common and most likely answer to this crossword clue is the 7 letter word BOLOGNA
I've seen this crossword clue in Financial Times
B
O
L
O
G
N
A
More clues leading to the result BOLOGNA
- Record kept by good Parisian coming to a city in Italy
- Upset a group such as Amnesty, put up in Italian city
- An attempt to throw up sausage
- Express disapproval about Latin grammar: not advisable, initially, somewhere in Italy
- Oblong – a shape for a sausage?
- Unusually long creeper seen round Italian city
- British lagoon designed for Italian city
- Old university graduate keeps on penning journal
- Record number in neckwear in Italian city
- Bung initially plugs hole in middle of gondola meandering somewhere in Italy
Buddy explains!

The straight part
We know that "Italian city" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case italian city = bologna.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.
What does BOLOGNA mean?
BOLOGNA noun- A seasoned Italian sausage made from beef, pork or veal.
- A type of sausage; bologna.