Re: Change remote engine to tiller style, is it possible??
The tiller handle from your 25 will not fit your 40. You can install a tiller handle from a 28-horse 1962-64, 33-horse 1965-70, 40-horse 1960-76 (commercial 40 through 1983 or even 1990).
Some boat manufacturers offered an accessory remote steering kit that had a little console that mounted on the back of the seat in front of the driver (Mirro Craft comes to mind; see attached image). It shouldn't be hard to make your own if you have the means.
With an adapter you could run a single cable, tube-type steering system that mounts on the corner of the stern, and a single adapter mounts to your 40.
I found some old obsolete OMC part #s for the parts you will need on a 40 for different steering systems:
For the OMC Rotamatic steering system (see thumbnail below) you will need 1 each of 2 parts: 172645, 172644 (the preceding parts are common to all old 28, 33, 35, 40 and early 1958-68 V4s if you decide to scrounge used motors for parts), plus 381387 (also common to 90 & 100-horse V4s 1965-68, not 1964).
For the OMC rack & pinion steering system you will need 1 each of the following part #s:
172251 (required on all motors 28-horse through 125-horse spanning the years 1958-72), 381987 (common to motors spanning 80 - 100-horse V4s 1965-68), 381471 (also required on all early V4s 1958-68)
I realize that the OMC parts are something you probably can't run down and purchase at the local BRP store, but that is why I gave the motors they interchange with in case you pick over some parts motors that may have been converted to those steering systems over the years. I'm sorry but I don't have pictures of those parts.