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We present a tensor-network-based classical algorithm (equipped with guarantees) for simulating $n$-qubit quantum circuits with arbitrary single-qubit noise. Our algorithm represents the state of a noisy quantum system by a particular ensemble of matrix product states from which we stochastically sample a pure quantum state. Each single qubit noise process acting on a pure state is then represented by the ensemble of states that achieve the minimal average entanglement (the entanglement of formation) between the noisy qubit and the rest of the system. This approach provides a connection between the entanglement of formation and the accuracy of the simulation algorithm. For a given maximum bond dimension $\chi$ and circuit, our algorithm comes with an upper bound on the simulation error (in total variation distance), runs in $poly(n,\chi)$-time and improves upon related prior work (1) in scope: by extending from the three commonly considered noise models to general single qubit noise (2) in performance: by employing a state-dependent locally-entanglement-optimal unraveling and (3) in conceptual contribution: by showing that the fixed unraveling used in prior work becomes equivalent to our choice of unraveling in the special case of depolarizing and dephasing noise acting on a maximally entangled state. This is joint work with Simon Cichy, Paul K. Faehrmann, Lennart Bittel and Jens Eisert.