Yes, this flow is possible but it requires an update to the PetaLinux user repository for Xilinx SDK.
There are two ways to upgrade to the newer repository.
1. Replace the PetaLinux repository files located in the PetaLinux installation directory
The PetaLinux repository is installed inside the <PETALINUX_INSTALL_DIR>/components/edk_user_repository directory.
To replace the user repository for all projects used with PetaLinux 2013.10, rename or delete the existing directory and replace it with the new archive downloaded below.
NOTE: This process will replace the user repository for all projects. To ensure compatibility with previous projects, ensure the directory hierarchy and naming remain consistent with the default installation path.
Existing projects compiled with the prior release will not be affected unless they are re-built from source.
2. Use the updated repository on a per-project basis
The updated PetaLinux repository located below can be downloaded and extracted to any location on disk (including user home directories).
Then, when including the repository in a Xilinx SDK workspace (see UG980 -- PetaLinux Board Bringup Guide) simply reference the location of the updated repository rather than the default path.
NOTE: Some systems may require that all PetaLinux users have access to both repositories.
In this scenario, it is recommended to extract the updated repository to the <PETALINUX_INSTALL_DIR>/components/ directory and give it a suitable unique name.
These instructions are for PetaLinux 2013.10 only.
PetaLinux 2014.05 and later includes native support for HSM.
PetaLinux 2013.04 and prior are untested with these steps.