yes. it should work just fine the bolt pattern is the same and the blocks are even pretty much the same minus a few small changes.
why not use the 360?

 

Yes I agree use the 5.9 and trans ect. Tons more power! The 3.9 V6 Magnums probably had as much power as the old 318's V8.

 

yeah i would love to run that 360. but to run alover the place to do my lawncare and gas being 4.00$ a gallon. not thanks i may even run a 2 barral.... lol maybe...

 

To add: Yes, it is a direct swap, but you have to use your 318 torque converter unless the donor converter is neutral balance. 95' + changed the external weighting around the 360. Some had a weighted flywheel and some had a weighted converter depending on the year.