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I am turning an open nook where a makeup counter was into small linen closet. There will be a partition wall with an opening for folding doors and a small bit of drywall on the outside of the opening. As seen in the pictures, there is a short finished inside wall and a finished outside corner that I want to extend drywall past.

left inside wall

right inside wall

What is the best way to do extend the drywall and build this partition wall? Should I remove the corner metal piece and attach the new studs, set back about 5/8", with screws through the existing drywall and re-mud?

What's the best way to make the new and old look seamless?

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I think you might have answered your question. Ideally, you want drywall to be supported and secured. You don't want a someone to lean (or even brush) against it, and then you have a torn strip of drywall. Put some wood behind it, make sure that it doesn't move.

For better stability, I would even consider taking an inch or two of drywall off of the corner on the outside, and with a single new piece of drywall, extend as far as you need into the closet space, with new studs behind what overhands the corner.

Refer to the doodle below. Black being the existing drywall. Red being new drywall. Blue being the frame of the closet doors (usually wood). Brown being the new stud.

Beautiful Depiction of Scenerio

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