diff --git a/swmodd/Config.in b/swmodd/Config.in
new file mode 100644
index 000000000..b9eecd47a
--- /dev/null
+++ b/swmodd/Config.in
@@ -0,0 +1,9 @@
+if PACKAGE_swmodd
+
+menu "Configuration"
+
+config SWMOD_HOST_IS_EXECENV
+	bool "Enable host system as execution environment"
+	default n
+endmenu
+endif
diff --git a/swmodd/Makefile b/swmodd/Makefile
index 5f08023db..c49a6aafd 100755
--- a/swmodd/Makefile
+++ b/swmodd/Makefile
@@ -6,12 +6,12 @@
 include $(TOPDIR)/rules.mk
 
 PKG_NAME:=swmodd
-PKG_VERSION:=2.0.15
+PKG_VERSION:=2.0.16
 
 LOCAL_DEV:=0
 ifneq ($(LOCAL_DEV),1)
 PKG_SOURCE_PROTO:=git
-PKG_SOURCE_VERSION:=39e711d51eed6d6268b18011cf7c40fc71eb332e
+PKG_SOURCE_VERSION:=34ab38c1d8bf1c42d5132e7a9c1acb7245a3fb4e
 PKG_SOURCE_URL:=https://dev.iopsys.eu/iopsys/swmodd.git
 PKG_SOURCE:=$(PKG_NAME)-$(PKG_SOURCE_VERSION).tar.gz
 PKG_MIRROR_HASH:=skip
@@ -35,6 +35,10 @@ define Package/swmodd/description
 	Software module daemon to manage software/deployment units using TR181 datamodel.
 endef
 
+define Package/swmodd/config
+	source "$(SOURCE)/Config.in"
+endef
+
 TARGET_CFLAGS += \
 	-I$(STAGING_DIR)/usr/include \
 	-D_GNU_SOURCE
@@ -44,6 +48,11 @@ MAKE_FLAGS += \
 	SWMOD_LXC="yes"
 endif
 
+ifeq ($(CONFIG_SWMOD_HOST_IS_EXECENV),y)
+MAKE_FLAGS += \
+	SWMOD_HOST_IS_EXECENV="yes"
+endif
+
 ifeq ($(LOCAL_DEV),1)
 define Build/Prepare
 	$(CP) -rf ~/git/swmodd/* $(PKG_BUILD_DIR)/