In this letter, we propose a novel precoding scheme for base station (BS) cooperation in downlink cellular networks that allow overlapped clusters. The proposed precoding scheme is designed to mitigate the overlapping-BS interference by maximizing the so-called clustered virtual signal-to-interference-plus-noise ratio (CVSINR). Simulations show that with the proposed scheme, overlapped clustering provides substantial throughput gain over the traditional non-overlapped clustering methods, and user fairness is also improved.