Poet in pub close to Eisteddfod (4)
I believe the answer is:
bard
'poet' is the definition.
(I know that bard is a type of poet)
'pub close to eisteddfod' is the wordplay.
'pub' becomes 'bar' (both are drinking establishments).
'close to' says to take the final letters (the 'close' to the word).
The last letter of 'eisteddfod' is 'd'.
'bar'+'d'='BARD'
'in' is the link.
(Other definitions for bard that I've seen before include "A drab sort of old poet" , "Shakespeare" , "Eisteddfod winner" , "Poet - prophet" , "Poet; sounds like forbidden" .)