You mean: will it work electrically? Yes, it does -- I'm using a Gotek this way (albeit in an SF354). You can then even replace the heavy brick of a power supply by a small 5V only one. As for the mechanical part: the case of mine was already damaged when I got it; so I didn't mind sawing a bit away.
The slot in SF314 is enough for Gotek, you don't need to cut anything. You have to use spacers to mount the Gotek, because the original FDD (at least in version with "slanted"/wide eject button) is 1,5x higher than Gotek. It would fit like so:
I can get 4 inch male to female cables for the floppy and as far as the power , just take one out of an old PC and solder it in place giving you about 8 inches of power cable to work with.
Now supporting Atari Portfolio , my archives are still being maintained. BBS down as far as an Atari run BBS, cause I sold everything but my Atari Portfolio. I might be going back up under Wildcat 5 on my PC .