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With the right trans output, transfercase input, adapter and sleeve, it should. I am not sure about the splines on each, good drivetrain shop like ORD should be able to set you up with the pieces you need /forums/images/graemlins/k5.gif
You can use a stock GM THM350 to 205 adaptor and cut off the end of the stock 700 output shaft (it is about 1/2 inch too long IIRC). Or, you can buy a shorter shaft and custom adaptor from Advanced Adaptors for several hundred bucks. The output shaft by itself is bout $200.
The GM adaptor I used was bought new from the dealer in 1993. Not sure if it is still available. I can dig out the GM part number if you need it, but I'd get one from Advanced Adaptors that won't crack.
The cast iron stock adaptor is a weak link. The over hung weight load of the 205 causes it to crack.
There might be a newer version of the GM adaptor designed for the round pattern 205. I don't know.