If your image map is essentially a mask of the lower slope areas, then you could simply use it as a Blend Shader on a node that provides displacement (Power Fractal, etc.). You would need to use PlanY projection in an Image Map Shader to load the image, and scale it appropriately (scale is in meters, use the same scaling as your DEM).
Alternatively, if it is just altitude or scale control you're looking for, you can use a built-in Distribution Shader to control both and again use it as a Blend Shader for a displacement-providing node.
- Oshyan