Syrian opposition leaders said on Monday they had failed to agree on a transitional government to run rebel-held areas, dealing a fresh blow to their efforts to present a credible alternative to President Bashar al-Assad's government.

The Syrian National Coalition said in a statement that a five-member committee will put forward proposals on forming a government within 10 days, after talks in an Istanbul hotel broke up without agreement on an interim prime minister.

Formation of a government is seen as a threat to some members of the SNC, especially the Muslim Brotherhood, which would lose influence if a smaller executive body were elected.

The Istanbul talks, the opposition's second bid to form a government, have only highlighted divisions in the coalition and risk undermining support for the umbrella grouping, formed two months ago in Qatar with Western and Gulf backing.

Abdulbacid Sieda, former president of the Syrian National Council, told Xinhua that members of the SNC are getting together in Istanbul and discussing the structure of government in transition.

"The final result will be announced after two weeks. It is still our aim to select a prime minister who represents the Syrian rebels. This person must be trustworthy and can represent the will of Syrian people," Sieda added.

Syria's opposition umbrella group met on Sunday in a bid to name a prime minister-in-exile, a day after the Damascus government ruled out any calls for the ousting of Assad.

Talks among opposition leaders were held behind closed doors on Sunday and Monday in Istanbul, and will be followed by an opposition forum in Paris on Jan 28 attended by Friends of Syria nations.

Power struggles within the 70-member coalition have undermined efforts to agree on a transitional government, even as Syria slides further into sectarian conflict between the Sunni Muslim majority and Assad's minority Alawite sect.

"This is a big blow for the revolution against Bashar al-Assad," said one Syrian opposition leader who also attended the meeting but who did not want to be named because he operates underground in Syria.

He said half of the SNC opposed the idea of a transitional government altogether, even after the group abandoned a previous stipulation that coalition members will not be allowed to serve in the government.

The coalition, dominated by Islamists and their allies, said in its statement its five-strong committee would consult opposition forces, the Free Syrian Army and friendly states over the political and financial commitments needed to make a government viable.

Sources at the negotiations said on Sunday that SNC President Moaz Alkhatib had flown to Qatar to secure promises of financial aid for a transitional government in rebel-held areas.

Reuters-Xinhua