Katia (KAH'-tee-yah) had maximum sustained winds late Tuesday of 60 mph (97 kph).
Hurricane specialist Michael Brennan said Tuesday morning that Katia could affect the Caribbean, but that it was too early to tell if it would hit the U.S.
Katia is centered about 885 miles west of the southernmost Cape Verde Islands and is moving at 22 mph (35 kph).
The storm's name replaces Katrina in the rotating storm roster because of the catastrophic damage from the 2005 storm.
Meanwhile, what once was Tropical Storm Jose has dissipated in the Atlantic on Monday, a day after brushing past Bermuda.
The remaining 2011 Atlantic hurricane names are:
RELATED: 6abc.com Hurricane Tracker