If you're able to do it, it will likely be distorted and the rust will come back. If you could see the inner side, you would see a pitted piece of metal with thick and thin portions. You won't weld up all of the pits because they haven't all rusted through yet. If you want this to last, cut it out and put new metal in it's place. It's always worse than it appears.
There are lots of threads and videos on the web that tell you how.