Observed September Arctic sea ice has declined sharply over the satellite era. While most climate models forced by observed external forcing simulate a decline, few show trends matching the observations, suggesting either model deficiencies or significant contributions from internal variability. Using a set of perturbed climate model experiments, we provide evidence that atmospheric teleconnections associated with the Atlantic multidecadal variability (AMV) can drive low-frequency Arctic sea ice fluctuations. Even without AMV-related changes in ocean heat transport, AMV-like surface temperature anomalies lead to adjustments in atmospheric circulation patterns that produce similar Arctic sea ice changes in three different climate models. Positive AMV anomalies induce a decrease in the frequency of winter polar anticyclones, which is reflected both in the sea level pressure as a weakening of the Beaufort Sea high and in the surface temperature as warm anomalies in response to increased low-cloud cover. Positive AMV anomalies are also shown to favor an increased prevalence of an Arctic dipole–like sea level pressure pattern in late winter/early spring. The resulting anomalous winds drive anomalous ice motions (dynamic effect). Combined with the reduced winter sea ice formation (thermodynamic effect), the Arctic sea ice becomes thinner, younger, and more prone to melt in summer. Following a phase shift to positive AMV, the resulting atmospheric teleconnections can lead to a decadal ice thinning trend in the Arctic Ocean on the order of 8%–16% of the reconstructed long-term trend, and a decadal trend (decline) in September Arctic sea ice area of up to 21% of the observed long-term trend.