diff --git a/CHANGES b/CHANGES
index 4f730e798..7ce281222 100644
--- a/CHANGES
+++ b/CHANGES
@@ -100,6 +100,8 @@ Bugs fixed
 * #7676: autodoc: typo in the default value of autodoc_member_order
 * #7676: autodoc: wrong value for :member-order: option is ignored silently
 * #7676: autodoc: member-order="bysource" does not work for C module
+* #7668: autodoc: wrong retann value is passed to a handler of
+  autodoc-proccess-signature
 * #7551: autosummary: a nested class is indexed as non-nested class
 * #7661: autosummary: autosummary directive emits warnings twices if failed to
   import the target module
diff --git a/sphinx/ext/autodoc/__init__.py b/sphinx/ext/autodoc/__init__.py
index 87ab5a7a0..f9c775f7d 100644
--- a/sphinx/ext/autodoc/__init__.py
+++ b/sphinx/ext/autodoc/__init__.py
@@ -400,21 +400,27 @@ class Documenter:
         if self.args is not None:
             # signature given explicitly
             args = "(%s)" % self.args
+            retann = self.retann
         else:
             # try to introspect the signature
             try:
+                retann = None
                 try:
                     args = self.format_args(**kwargs)
                 except TypeError:
                     # retry without arguments for old documenters
                     args = self.format_args()
+
+                if args:
+                    matched = re.match(r'^(\(.*\))\s+->\s+(.*)$', args)
+                    if matched:
+                        args = matched.group(1)
+                        retann = matched.group(2)
             except Exception:
                 logger.warning(__('error while formatting arguments for %s:') %
                                self.fullname, type='autodoc', exc_info=True)
                 args = None
 
-        retann = self.retann
-
         result = self.env.events.emit_firstresult('autodoc-process-signature',
                                                   self.objtype, self.fullname,
                                                   self.object, self.options, args, retann)
diff --git a/tests/test_ext_autodoc.py b/tests/test_ext_autodoc.py
index 4ed4a9b05..50d641dc9 100644
--- a/tests/test_ext_autodoc.py
+++ b/tests/test_ext_autodoc.py
@@ -162,7 +162,6 @@ def test_format_signature(app):
         pass
     assert formatsig('function', 'f', f, None, None) == '(a, b, c=1, **d)'
     assert formatsig('function', 'f', f, 'a, b, c, d', None) == '(a, b, c, d)'
-    assert formatsig('function', 'f', f, None, 'None') == '(a, b, c=1, **d) -> None'
     assert formatsig('function', 'g', g, None, None) == r"(a='\n')"
 
     # test for classes
@@ -247,6 +246,27 @@ def test_format_signature(app):
         '(b, c=42, *d, **e)'
 
 
+def test_autodoc_process_signature_typehints(app):
+    captured = []
+
+    def process_signature(*args):
+        captured.append(args)
+
+    app.connect('autodoc-process-signature', process_signature)
+
+    def func(x: int, y: int) -> int:
+        pass
+
+    directive = make_directive_bridge(app.env)
+    inst = app.registry.documenters['function'](directive, 'func')
+    inst.fullname = 'func'
+    inst.object = func
+    inst.objpath = ['func']
+    inst.format_signature()
+    assert captured == [(app, 'function', 'func', func,
+                         directive.genopt, '(x: int, y: int)', 'int')]
+
+
 def test_get_doc(app):
     directive = make_directive_bridge(app.env)