We developed a data-driven prediction system for precipitation (Pr) and near-surface temperature (T2m) over the global domain by utilizing NASA’s satellite observations and the associated reanalysis products, with the focus on S2S hydrologic prediction. Our approach is based on a well-established methodology of linear inverse modeling modified and adapted by our science team for high-resolution modeling of precipitation. The key element of this new methodology is the usage of a so-called pseudo-precipitation (PP) variable, equal to the actual Pr in the case the precipitation is occurring and, otherwise, equal to the (negative) air-column integrated water-vapor saturation deficit (the amount of water vapor to be added to the air column to achieve saturation at each vertical level). The model Pr and T2m forecasts are then validated against the observed fields as usual. It is in part through the T2m modeling that the S2S predictability associated with low-frequency dynamical climate modes would filter in the potential S2S precipitation prediction skill within the proposed framework. The system above was shown to be an efficient tool for simulating independent sequencies of daily evolution of the global T2m and Pr fields with spatiotemporal characteristics strikingly similar to the observed characteristics. We are currently evaluating its predictive capabilities. We hypothesize that: (i) the resulting data-driven prediction system may rival the S2S skill of state-of-the-art NWP models in predicting extreme events in widely diverse precipitation environments; and that (ii) it will do so due to its ability to capture tropical low-frequency modes, as well as tropical-to-extratropical teleconnections in the context of a globally connected, seamless multi-scale model. Our goals are to demonstrate both the proposed model skill and its internal dynamical sources, as well as to map out the ensuing implications of these results for hydrologic predictions throughout the globe.