I would butt weld it. It's a little harder than overlap but when done right makes for an invisible repair. I just did this on the 71 I'm working on. First trace with a sharpie how high your new panel is up the car. Then cut with cutoff wheel few inches below your line. Do this all way around. Fit the panel again and get it where you want it and hold it in place with self tapping screws.
I then use a air powered body saw and cut through both panels at same time. This will make for a perfect seam. Remove panel and punch holes at front, back, and wheel well. Grind and prep for weld. Make sure you move around a lot so you don't warp the panel. I even keep a wet rag with me to cool the welds. Bounce around a lot or you will warp it. Same thing when grinding. Move around and don't overheat the metal. That's biggest mistake most people make. I even climbed inside of the trunk and ground the weld down on inside and you would never know that quarter panel was replaced. Let me know if you have any questions. There's lots of ways to do this, but this way works for me. You can also check out my build thread for all the pics of replacing the panels.
https://www.7173mustangs.com/thread-new-project-for-this-winter-71-mach-1