Yes, that makes sense. It should hopefully work.

You simply need longer rack ends and/or tie rods. As mentioned above AE86 rack ends and RA40 tubes/tie rods should work (I think they will be long enough). Or you could use RA60 rack ends rather than AE86, they are a little longer, though the inner balljoint sits slightly further inboard.

Forget S13 tierods. They are only used if you are running S13 hubs/coilovers.

Check the length of your XT130 steering arms too. They may be very long compared to AE86 arms, giving you slow steering and little lock.