Abstract. Global Navigation Satellite System (GNSS) radio occultation (RO) measurements are promising in sensing the vertical structure of the Earth's planetary boundary layer (PBL). However, large refractivity changes near the top of PBL can cause ducting and lead to a negative bias in the retrieved refractivity within the PBL (below ∼ 2 km). To remove the bias, a reconstruction method with assumption of linear structure inside the ducting layer models has been proposed by Xie et al. (2006). While the negative bias can be reduced drastically as demonstrated in the simulation, the lack of high-quality surface refractivity constraint makes its application to real RO data difficult. In this paper, we use the widely available precipitable water (PW) satellite observation as the external constraint for the bias correction. A new framework is proposed to incorporate optimization into the RO reconstruction retrievals in the presence of ducting conditions. The new method uses optimal estimation to select the best refractivity solution whose PW and PBL height best match the externally retrieved PW and the known a priori states, respectively. The near-coincident PW retrievals from AMSR-E microwave radiometer instruments are used as an external observational constraint. This new reconstruction method is tested on both the simulated GNSS-RO profiles and the actual GNSS-RO data. Our results show that the proposed method can greatly reduce the negative refractivity bias when compared to the traditional Abel inversion.