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An international coalition said Sunday that it will provide funding and communications equipment to Syrian rebels and opposition activists, reflecting a shift toward military options that might oust Syrian President Bashar Assad after a year of failed diplomacy aimed at stopping his crackdown on dissent.

Participants at a meeting on Syria, held in Istanbul, said Saudi Arabia and other Gulf countries are creating a multimillion-dollar fund to pay members of the rebel Free Syrian Army and soldiers who defect from the regime and join opposition ranks. One delegate described the fund as a "pot of gold" to undermine Assad's army.

In addition, U.S. Secretary of State Hillary Rodham Clinton said the United States is providing communications equipment to help opposition members in Syria organize, remain in contact with the outside world and evade regime attacks.

"We are discussing with our international partners how best to expand this support," Clinton said.

The large-scale plan by Gulf countries to help Syria's badly overmatched rebels offers a solution to the international divide over whether to arm the rebels or support them through only non-lethal or humanitarian means. It also reflects frustration with appeals to Assad to stop his crackdown on dissent, as well as hopes of forcing his ouster by shifting the military balance on the ground.

Conference participants confirmed the Gulf plan on condition of anonymity because details were still being worked out. It was unclear how the fund would be set up and monitored, or how the money, allegedly earmarked for salaries, would be guaranteed. A participant said the fund would involve millions of dollars every month.

The Saudis and other Arab Gulf states have proposed giving weapons to the rebels, while the U.S. and other allies, including Turkey, have balked out of fear of fueling an all-out civil war. Washington hasn't taken any public position on the fund, but it appears that it has given tacit...