France, the former colonial power, has about 4,500 troops already operating in the region, an arid expanse just below the Sahara desert.
His remarks come after a rift with G5 leaders because of hostility toward French troops fighting in the Sahel, and in a France tired of the commitment without seeing results.
Previous year saw the highest annual death toll due to armed conflict in the region since 2012.
At a press conference after the talks, Macron said he would send 220 more soldiers to reinforce France's 4,500-strong Barkhane operation, tasked with training and assisting under-equipped and strained local forces. Last month, Macron said he wanted the Sahelian leaders to clarify whether they want and need French troops.
The new structure, named Coalition for the Sahel, brings the G5 states, French forces and any future troops under a single command.
Macron invited the Sahel leaders to the town of Pau, where seven of the soldiers were based, after 13 troops were killed in a helicopter collision during action against militants.
France is closely following the situation in Kashmir, the French government said on Monday and noted that the issue was discussed during a telephonic conversation between Prime Minister Narendra Modi and French President Emmanuel Macron three days ago.
Nigerien President, Mahamadou Issoufou, has replaced the head of the country's army after two of the country's deadliest attacks killed at least 160 soldiers, the government said.
Despite strong French presence in Mali, along with a 13,000-strong United Nations peacekeeping force, conflict has spread to neighbouring countries Burkina Faso and Niger.
"We're developing options for the secretary to consider, and we are developing those options in coordination with our allies and partners", he said.
Some of them are loyal to al-Qaeda, while others are tied to the Islamic State.
France may also be facing the prospect of losing American help, after The New York Times reported in December that the Pentagon would reduce troop levels in Africa, or even withdraw them completely. This was the deadliest attack on Nigerian troops.
"The announcements made seem to further entrench a military strategy led by France that has been failing to provide security and stability in the region for years now", said Joe Penny, a journalist and co-founder of The Sahelien, a news site focused on the region.
Since 2013, when France intervened Mali, the security situation deteriorated.