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This is possible the same as it is for a Turbo Diesel out of a 300D 1982 and later, but your going to have to install it with the transmission and driveshaft since these are of different lengths. It will not bolt up to a 240D Automatic, if this is where your going.
 

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Still, going from a 67 horsepower motor to a 88 horsepower motor will be noticeable in throttle response, but you will still need the tranny to go with it I'm told. The driveshaft will also need to be changed since the driveshaft for the 300D is going to be shorter than the one for the 240D.
 
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