240 A/T cooler line repair

The transmission fluid cooler line has rubbed against a bracket on the
exhaust system of my 1989 240 DL and is now slowly leaking fluid on the
pipe.

Smokes and smells terrible, but the leak is only a drip and is only
noticeable when the engine is running and the system is under pressure.

I thought it was an oil leak when I noticed the smell and smoke earlier this
week, but saw the crease in the line while I was underneath changing the oil
yesterday. It's like someone took a hacksaw and cut a groove in the line.
Must have been rubbing for a long time.

Can I repair the line with a sealant and add a bracket to move it away from
the exhaust, or should I replace the whole line from the radiator to the
trans pan?

If it can be repaired, so can someone recommend sealant for the line? It
appears to be steel and about a pencil width in thickness.

Thanks.

 

If you have access to a tubing cutter you can cut the
damaged section out install a piece of fuel line in
place & tighten with hose clamps