The deal will mean that US consumers will now have a choice between Google and Verizon or Apple and the iPhone, which is exclusively sold by AT&T, as well as tariffs on the BlackBerry and Palm Pre.
Eric Schmidt, chief executive of Google, said: "Everybody knows that Verizon's network is the best in the US by far, with their reach and performance.
"It's the largest US wireless provider with 85m customers, so this is a big deal for us, a major milestone for the Android platform."
News of the announcement was public at the same time as Google rival Microsoft launched its long-awaited Windows Mobile 6.5 operating system, suggesting Google had deliberately upstaged its competitor.
Separately, AT&T has bowed to pressure from US regulators and consumers by allowing inexpensive internet phone calls to be placed through its networks through Apple's iPhone.
Previously, the company had blocked the proposed move, arguing that cheaper calls would undercut AT&T's business rationale for subsidising customer iPhone purchases.
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