In early January 1942, Trifunović-Birčanin played a central role in organizing the units of Chetnik leaders in western Bosnia, Lika, and northern Dalmatia into the Dinara Division and dispatched former Royal Yugoslav Army officer to help. Đujić was to be the commander of the division and its goal was for the "establishment of a Serb national state" in which "an exclusively Orthodox population is to live." In the same month General Renzo Dalmazzo, Italian Sixth Army Corps commander organised a meeting in the hope that the Chetniks would take part in a joint operation against the Partisans. This was attended by Trifunović-Birčanin, Jevđević, Jezdimir Dangić and Stevo Rađenović, although "for the time being, however, the Germans vetoed any use of the Chetniks in such a capacity". Based in Split, Trifunović-Birčanin was appointed by Mihailović to command Chetnik forces over Dalmatia, Herzegovina, western Bosnia and southwestern Croatia in the spring of 1942. According to historian Jozo Tomasevich, "both Chetnik and Italian documents clearly show that his role as liaison officer between the Chetniks and the Italian Second Army was just as important as his command over the Chetnik formations in those areas." On 23 June 1942, assisted by Trifunović-Birčanin, the Italians set up the first units of an Italian-controlled Anti-Communist Volunteer Militia known as MVAC (), dedicated to "the annihilation of communism". In 1942 and 1943, 19,000–20,000 Chetniks, an overwhelming proportion of which were organised as Italian auxiliary forces in the MVAC in the Italian-occupied parts of the NDH, were equipped with arms, ammunition and clothing by the Italians. In 1942, the agreements with the Italians came under threat when they "threatened to cut off provisions and funding" after warning Jevđević and Trifunović-Birčanin that "their units were provoking disorder." Beginning in September 1942, the Chetniks attempted to persuade the Italians into carrying out a "large operation" within their occupation zone. On 10 and 21 September, Trifunović-Birčanin met with Mario Roatta, commander of the Italian Second Army, and urged him to take action "as soon as possible" in a large operation against the Yugoslav Partisans in the Prozor-Livno area and offered aid in the form of 7,500 Chetniks on the condition that they be provided the necessary arms and supplies.