The Collaborative International Dictionary of English v.0.48:

Velout'e \Ve*lou`t['e]"\, n., or Sauce velout'e \Sauce
velout['e]\ [F. velout['e], lit., velvety.] (Cookery)
   A white sauce or stock made by boiling down ham, veal, beef,
   fowl, bouillon, etc., then adding soup stock, seasoning,
   vegetables, and thickening, and again boiling and straining.
   [Webster 1913 Suppl.]

WordNet (r) 3.0 (2006):

veloute
    n 1: white sauce made with stock instead of milk