City of southern France (7)

I believe the answer is:

avignon

(Other definitions for avignon that I've seen before include "palace and bridge found here in France" , "City of southeast France" , "French city, famous for its 12th century bridge" , ""Sur le pont d'______ on y danse, on y danse"" , "Les Demoiselles d'here, Picasso" .)

I've seen this clue in The Times.

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