Piece of furniture found outside a US city (7)
I believe the answer is:
seattle
'us city' is the definition.
(city in Washington, USA)
'piece of furniture found outside a' is the wordplay.
'piece of furniture' becomes 'settle' (settle is a kind of piece of furniture).
'found outside' means one lot of letters goes inside another.
'settle' going around 'a' is 'SEATTLE'.
(Other definitions for seattle that I've seen before include "Place in Washington" , "Largest city in the state of Washington" , "US West coast port" , "Port of north-west USA" , "US Pacific port" .)