We introduce a valence-bond dynamical mean-field theory of doped Mott insulators. It is based on a minimal cluster of two orbitals, each associated with a different region of momentum space and hybridized to a self-consistent bath. The low-doping regime is characterized by singlet formation and the suppression of quasiparticles in the antinodal regions, leading to the formation of Fermi arcs. This is described in terms of an orbital-selective transition in reciprocal space. The calculated tunneling and photoemission spectra are consistent with the phenomenology of the normal state of cuprates. We derive a low-energy description of these effects using a generalization of the slave-boson method.
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