[nef-yoo or, esp. British, nev-yoo]
a son of one's brother or sister.
a son of one's spouse's brother or sister.
an illegitimate son of a clergyman who has vowed celibacy (used as a euphemism).
Obsolete. a direct descendant, especially a grandson.
Obsolete. a remote male descendant, as a grandnephew or cousin.

1250–1300; Middle English neveu < Old French < Latin nepōtem, accusative of nepōs nephew, grandson; akin to Old English nefa, Dutch neef, German Neffe, Old Norse nefi; the pseudo-etymological spelling with ph has influenced pronunciation Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2014.
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World English Dictionary
nephew (ˈnɛvjuː, ˈnɛf-)
a son of one's sister or brother
[C13: from Old French neveu, from Latin nepōs; related to Old English nefa, Old High German nevo relative]

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009
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Word Origin & History

c.1300, from O.Fr. neveu (O.N.Fr. nevu) "grandson, descendant," from L. nepotem (nom. nepos) "sister's son, grandson, descendant," in post-Augustan L., "nephew," from PIE *nepot- "grandchild," and in a general sense, "male descendant other than son" (cf. Skt. napat "grandson, descendant," O.Pers. napat-
"grandson," O.Lith. nepuotis "grandson," O.E. nefa, Ger. Neffe "nephew," O.Ir. nia, gen. niath "son of a sister"). Used in Eng. in all the classical senses until meaning narrowed in 17c., and also as a euphemism for "the illegitimate son of an ecclesiastic" (1587).
Online Etymology Dictionary, © 2010 Douglas Harper
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Example sentences
My nephew tried to be indiscreet about dating a student in a similar situation
  and it turned out to have horrible consequences.
The train blasts out a shrill whistle which my nephew imitates intermittently
  for the next couple of hours with piercing accuracy.
My nephew was in a serious accident caused by a driver running a red light.
She said she became worried about her nephew recently after he disappeared from
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