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We investigate the impact of Arctic sea ice loss on the Atlantic meridional overturning circulation (AMOC) and North Atlantic climate in a coupled general circulation model (IPSL‐CM5A2) perturbation experiment, wherein Arctic sea ice is reduced until reaching an equilibrium of an ice‐free summer. After several decades we observe AMOC weakening caused by reduced dense water formation in the Iceland basin due to the warming of surface waters, and later compensated by intensification of dense water formation in the Western Subpolar North Atlantic. Consequently, AMOC slightly weakens in deep, dense waters but recovers through shallower, less dense waters overturning. In parallel, wind‐driven intensification and southeastward expansion of the subpolar gyre cause a depth‐extended cold anomaly ∼2°C around 50°N that resembles the North Atlantic “warming hole.” We conclude that compensating dense water formations drive AMOC changes following sea ice retreat and that a warming hole can develop independently of the AMOC modulation.

Decadal climate variability and change affects nearly every aspect of our world, including weather, agriculture, ecosystems, and the economy. Predicting its expression is thus of critical importance on multiple fronts. Poweret al. review what is known about tropical Pacific decadal climate variability and change, the degree to which it can be simulated and predicted, and how we might improve our understanding of it. More accurate projections will require longer and more detailed instrumental and paleoclimate records, improved climate models, and better data assimilation methods. —HJS