Didn't end up scrapping it after all, I cut the firewall around the top and sides of the nacelle. I then added packing to the top of the nacelle and glued/ taped the firewall back in place.
The motor now has the identical dimensions as
@Scary, I fitted a Lipo and ran up the motor. The downward nose tendency from the motor thrust has significantly reduced, its only noticeable now on the higher throttle setting.
I will give it one more chance to fly, next time I visit the club if it fails again its getting incinerated.