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ArMiGer

94 Volvo 850 auto transmission

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You probably can, but you would lose the speedometer.  

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The issue is that the newer transmission will not have the speed sensor that the older cars use. '96 and newer use the ABS/wheel speed senors for the speedometer signal, so there are no provisions for a speed sensor on the transmission.

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10 hours ago, ArMiGer said:

Is not the VSS (vehicle speed sensor) on the 98 s70 automatic with the same function?

I don't think so. Take a look at this thread. https://www.___.com/forums/viewtopic.php?t=71559#p376691

Good news is that it seems splicing that connector into a wheel speed sensor will fix that, details follow the linked post in that thread.

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