We cannot answer that question based on (1) the confusing description
(2) the lack of dimensions, circumstance, actual size of the welded pipe, the defect, the proposed cutout - if any at all, the fluid, applicable Code, the temperature, alloy, and weld procedure.
Provide a sketch of the pipe, the defect, the proposed "hole" cutting it out, and the problem data.
Your answer may be "Yes".
May be "No."
Is probably "Maybe."