The app, which is free to download from the Android Market, routes calls over the internet to ensure they're cheaper than using your mobile network.
The app is compatible with handsets running version 2.1 of the operating system and lets mobile phone owners call other Skype users for free using a handset's Wi-Fi or 3G connection.
Users will also be able to make low-cost calls to other landlines and mobile phones worldwide, as well as send instant messages to Skype contacts and sync contacts from web-based Skype address books.
"The Skype experience is ubiquitous today. More and more people are using Skype to do things together when apart. With the addition of Android, we are pleased that Skype is now available on three of the most popular mobile platforms today: Android, iOS and Symbian," said Mark Douglas, product manager of Android.
See also: Skype hires new CEO from Cisco