Fine setting for Labrador primarily — and boxer (3)
I believe the answer is:
'boxer' is the definition.
'fine setting for labrador primarily' is the wordplay.
'fine' becomes 'ai' (I've seen this in other clues).
'setting for' indicates putting letters inside.
'primarily' suggests taking the first letters.
The initial letter of 'labrador' is 'l'.
'ai' placed around 'l' is 'ALI'.
'and' acts as a link.
(Other definitions for ali that I've seen before include "Son-in-law to Muhammad" , "Muhammad - - , legendary boxer" , "Cassius Clay became Muhammad ..." , "Muhammad ..., famous boxer" , "Muhammad or Baba?" .)