Hmm...
Never heard of this before but on checking the schematics there is a simple note "no connect on DRAMs are connected together to facilitate future conversion to 4M part (1Mx4)" - however, there's nothing more indicating that it's actually possible. It's not shown if the RAM controller U5 could provide muxed A9 for 1Mx4 operation, but it's fed the necessary inputs. You could check where pin 5 (NC) of the DRAMs leads to, but U5 is lacking the required output pin... Makes me seriously doubt whether this is possible.
As Azryl noted DIP20 packages of 1Mx4 DRAMs would be required, usually they come in DIP26.
Theoretically, the side expansion slot could be used for >8 MB RAM expansion, but only in conjunction with a 32 bit CPU upgrade to overcome the Zorro II space limitation. (Something in the line of a GVP A530, but with an extended RAM controller.)