Showers and thunderstorms have become more organized around a non-tropical area of low pressure.
A subtropical or tropical storm could develop as early as Thursday evening.
Over the weekend, the storm is expected to drift over cooler waters, which would end its development chances.
The chance for development has risen to 60% over the next 48 hours.
Meanwhile, Tropical Storm Jerry is nearing the Caribbean.
It is expected to become a hurricane as it lifts to the east of Bermuda.