DECLARE @tApplXML XML 
,@SQL NVARCHAR(max)
,@ParmDefinition NVARCHAR(1024) 
,@applnbr int

set @applnbr = 24 

SET @SQL = N'SELECT @ptApplXML = (SELECT * FROM [database].[dbo].[table] 
WHERE [ApplNbr] = @pApplNbr
 FOR XML PATH(''database.table''))'
SET @ParmDefinition = N'@pApplNbr INT,@ptApplXML xml OUTPUT'

PRINT @SQL

EXECUTE sp_executeSQL 
@SQL,
@ParmDefinition,
@pApplNbr = @ApplNbr,
@ptApplXML= @tApplXML OUTPUT 

select @tApplXML