Nah you will need to get an 885 325i head.
Also the 320i runs a smaller bore than a 325 so you will need to rebore it and fit 325i pistons as well.
I would buy a 325i block and head and a complete E36 328i sub assembly (rods, crank, pistons). With these in the motor you get a displacement of 2.8 and quite a rorty M20.
Also as far as my research has highlighted sides DO NOT work well on an M20, it relies on a longish intake.
Racing Snake on this forum is a MAD M20 expert, I have seen a 323i he build walk away from a 2.9 stroker.
Buy a decent M20B25, take the head to Racing Snake for fiddling, deck the block and do electric fans and a few other small things and you will have yourself a chirpy little car I can assure you!