The new app delivers breaking news by text, images and video, and features seven different categories for users to choose from: top stories, UK news, sport, business, world news, showbiz and skynews.com's 'strange news' category.
Users will also be able to send Sky News their own stories and pictures directly through the application.
A second tool allows you to to sign up for breaking news alerts with a single click, delivered straight to the iPhone.
As well as watching in-depth coverage on individual stories, by selecting the 'video' icon at the bottom of the homepage, users can watch a news headline video, a top showbiz video or a weather report.
James Weeks, executive producer for New Media for Sky News, says: "We have spent a long time developing this app to make sure it delivers first-class breaking news in the way that Sky news viewers and web users have come to expect."
The launch follows on from the introduction of the Sky+ Remote Record application in April.
Find out more about the best apps for your iPhone in our special Ultimate Apps feature in the July issue of What Hi-Fi? Sound and Vision, on sale from June 3rd.