Yes, AT&T will be selling soon an Android phone, the HTC Lancaster. A few days ago I read the news about T-Mobile selling iPhones and now this news. Coincidence?

AT&T is getting an Android-powered phone after all. Behold the HTC Lancaster with a striking resemblance to the HTC Magic when closed and looks a lot more like the Touch Pro in form factor for a QWERTY slider than the T-Mobile G1.

HTC Lancaster Android phone for AT&T | Android Community