The mixture effect of the long-term variations is a main challenge in single channel singular spectrum analysis (SSA) for the reconstruction of the annual signal from GRACE data. In this paper, a nonlinear long-term variations deduction method is used to improve the accuracy of annual signal reconstructed from GRACE data using SSA. Our method can identify and eliminate the nonlinear long-term variations of the equivalent water height time series recovered from GRACE. Therefore the mixture effect of the long-term variations can be avoided in the annual modes of SSA. For the global terrestrial water recovered from GRACE, the peak to peak value of the annual signal is between 1.4 cm and 126.9 cm, with an average of 11.7 cm. After the long-term and the annual term have been deducted, the standard deviation of residual time series is between 0.9 cm and 9.9 cm, with an average of 2.1 cm. Compared with the traditional least squares fitting method, our method can reflect the dynamic change of the annual signal in global terrestrial water, more accurately with an uncertainty of between 0.3 cm and 2.9 cm.