Consumers will be able to buy the Apple iPhone at a number of Tesco's stores and its website from Monday.
The supermarket is offering a £20 per month deal that undercuts it rivals' tariff prices, although those who buy the smartphone through Tesco will have to pay for either the 8GB 3G or 16GB 3GS models up front.
Lance Batchelor, chief executive of Tesco Mobile, said the move means the iPhone "is now available and affordable for all" and claimed that the supermarket offers the best deals in the UK market.
"We're delighted to make the iPhone available to our customers. It shows what a serious player in the mobile market Tesco Mobile has become," he added.
Rival mobile phone firm Orange started selling the iPhone this year after the Apple product had previously only been available on the O2 network in the UK.
Tesco's move to join these two operators precedes Vodafone's arrangement to sell the iPhone from early next year.
