RIYADH, Saudi Arabia—Saudi Arabia's intelligence chief told European diplomats this weekend that he plans to scale back cooperating with the U.S. to arm and train Syrian rebels in protest of Washington's policy in the region, participants in the meeting said.

Prince Bandar Bin Sultan al-Saud's move increases tensions in a growing dispute between the U.S. and one of its closest Arab allies over Syria, Iran and Egypt policies. It follows Saudi Arabia's surprise decision on Friday to renounce a seat on the United Nations Security Council.

The Saudi government, after preparing and campaigning for the seat for a year, cited what it said was the council's ineffectiveness in resolving the Israeli-Palestinian and Syrian conflicts.

Diplomats here said Prince Bandar, who is leading the kingdom's efforts to fund, train and arm rebels fighting Syrian President Bashar al-Assad, invited a Western diplomat to the Saudi Red Sea city of Jeddah over the weekend to voice Riyadh's frustration with the Obama administration and its regional policies, including the decision not to bomb Syria in response to its alleged use of chemical weapons in August.

"This was a message for the U.S., not the U.N.," Prince Bandar was quoted by diplomats as specifying of Saudi Arabia's decision to walk away from the Security Council membership.