Dell, which recently started selling Android-powered phones in China and Brazil, made the move in a bid to increase sales as its core personal computer business lags in terms of sales.
Dell and AT&T did not release any specific details on pricing or availability of the phone, but confirmed that the smartphone is from the Mini 3 Android-based lineup and will be released in the first half of 2010.
AT&T said it will also be offering Motorola and HTC phones that are powered by Android.
The wireless carrier said it plans to have five phones that run the Android operating system by the first half of the year. As of now, the company does not offer any Android powered phones.
Meanwhile, Google unveiled its first smartphone, called the Google Nexus One, which goes on sale later in the Spring.