Medic needs to be deployed in German city (7)
I believe the answer is:
dresden
'german city' is the definition.
(I've seen this before)
'medic needs to be deployed in' is the wordplay.
'medic' becomes 'dr' (**).
'to be deployed' is an anagram indicator.
'in' is an insertion indicator.
'needs' anagrammed gives 'esden'.
'dr' inserted within 'esden' is 'DRESDEN'.
(Other definitions for dresden that I've seen before include "Fine china named after German city" , "German city known for its china" , "source of 26 [CHINA]" , "Saxony capital" , "Dr needs to be in the German city" .)