Sleeve it. Absolutely no doubt about that. A butt weld might be OK for pipeline (and BTW, a lot of those are socket welds, not butt welds) but a pipeline isn't bouncing along the highway with all kinds of flex and force being applied.
Get the next size smaller in pipe, cut a length of it where at least 8-10" extends beyond either side of the weld. Drill holes in the existing tongue tubing where the sleeve can be plug-welded. Plug weld at each end of the pipe, with at least a 3/4" diameter plug weld. Do one end first, then, slide the 2 halves together, but leave about a 1/8" gap where the butt weld will go. This will allow the weld to not just penetrate the 2 halves, but also down into the sleeve.
Don't worry if the sleeve isn't exactly the right size. The main thing is to have SOMETHING in there, and as long as you have a plug weld at either end, and you are tying all 3 pieces together at the joint, it won't be a problem.
If the sleeve you attempt to use is a tad too big, have it turned on a lathe to correct diameter, so it will slide right in there.
On Sch 40 pipe that size, I would run about 85-90 amps DC+ with a 7018 3/32" (stick)....or, with MIG, I'd run about 145 amps DC+ with .030" ER70S-6 wire and 80/20 argon/CO2 blend.
Hope that helps.