Yes it can. Check the back of the NR1601 (bottom left hand end in the pic) and you will see a section called 'Analogue Audio'. Underneath where it says 'Aux 2' you will see the CD input.
How about the Marantz CD6003? Seems a natural choice and fits your budget.
The front fascias are both 440mm wide and both the same shape, so it will be a nice cosmetic match. (CD6003 comes in black or silver to match whichever finish your NR1601 receiver has.)
If you are going to stack them, ensure the receiver goes on top (for dissipation of heat from its amp).
A £150 blu ray player won't play CDs anywhere near as good as a similar priced dedicated player, you would have to look at something like the Cambridge Audio 650BD at around £400 IMO, slightly more than your budget, but only 1 component.
I had a Marantz NR1501 and had a Roksan kc1 CD player and it sounded sweet as. You could prob find one on eBay for 150 or less then spend the remaining 100 or so on a Sony S370 BLU RAY. Or if you want just one box then prob the Cambridge.
thanx guys,i may just look at up-ing the budjet foe the blue-ray...i'll check out the Cambridge,but is there a wireless one about(as in internet)as i take it that the blue-ray player will need internet access.