No. You cannot specify which exact field you need to distinct with. It only works with the whole row.
As of your problem – just make your query a subquery and in outer one GROUP BY user_id
SELECT * FROM
(SELECT a.user_id,a.updatecontents as city,b.country
FROM userprofiletemp AS a
LEFT JOIN userattributes AS b ON a.user_id=b.user_id
WHERE typeofupdate="city")
UNION DISTINCT
(SELECT a.user_id,c.city,c.country
FROM userverify AS a
LEFT JOIN userlogin AS b ON a.user_id=b.user_id
LEFT JOIN userattributes AS c ON a.user_id=c.user_id
WHERE b.active=1 AND a.verifycity=0) x
GROUP BY user_id