2 choices:
1) Draw the original area polygon so that it goes round the keep out area.
As long as they don't overlap, you could use a number of separate copper areas to tile round the keep out area.
2) Place a Solid Region set to Cutout where you want the keep out.
Beware though that might also remove pads and tracks too. I'm not sure because I have not tried this.
If it is not too late, I found a solution:
\- Make circle
\- right\-click \- convert to Solid Region
\- Move to Layer with copper you want cutout on
\- Set type to \- No Solid
\- Rebuild copper
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