That could have happened, although I doubt if France would have been very happy about too powerful Germany and lost of any influence in Central-Eastern Europe. The same could be said about Britain. To make that happen I think we need more dangerous Soviet Union and much less sympathy in the west for Eastern Europeans countries. Perhaps some war in Eastern Europe in 1930s? Then Germany might have intervened claiming they are trying to bring back peace and order in the region.
Anyway,Hitler's chances against Soviet Union are much better. He doesn't have to worry about occupying Belgium, Holland, France, Norway and Denmark, and Germany doesn't suffer any losses fighting there: that already gives Hitler a few hundred thousands soldiers more on the eastern front together with hundreds of tanks and planes. His Balcan flank is also relatively secure, so invasion of Yugoslavia or Greece is not necessary, even if Italian get their butts kicked there. No war in North Africa either, no need. Even if Mussolini had ambitions to make Mediterranean an Italian sea, Hitler might very well leave him on his own against France and Britain in exchange for carte blanche in the east.
OTOH, he can not count on enormous mass of equipment captured during 1940 campaigns, especially French trucks and on French industry working only for German war machine.
However, I wonder how British or French public opinion would have reacted to German atrocities in USSR, and genocide of the Jews (unless Germans instead off killing them only deport them...to Palestine?).