you can fit a newer diesel in there, but since you already are on the road of a m102 engine, why not try another one that are a bit peppier from the start?
are you knowledgable of injectionsystems? how does the one you have today work? and would you be able to make a m103 start and run properly?
easy "starts as is"
even more difficult
m103 requires modification of enginebay
m111 or m103 injection engine.
if you have knowledge about engine software, and are able to build yourself a Megasquirt or Vems or anything like that i would aim for the m111 engine, either with compressor stock, or turbo one of those.
the m103 and om603 are quite long, and will require some work of the firewall aswell as removal of those two bars that only the m110 lacks original (280E) this mod also matters for atleast the om602 afaik
regarding the oilfilter you might be able to fit the diesels without moving that, but it will set the engine quite long to the front near the radiator.
a om602 turbo or om605 turbo is what i would do, but i on the other hand only aim to use diesels.