Discovered by the hacking collective Ghost security group, the app called Amaq News is designed to "streamline access" to the terrorist group's "propaganda".
According to a Fortune report, the Android-based app is essentially a news portal run by the Amaq News Agency - a group believed to be tied to IS.
When users start the app, it displays a scrolling news feed and icons to play videos. It also has options for users to have the feed automatically check for new posts.
"It can even be automatically updated whenever the app's developers send out new versions of the programme," the report added.
The app, however, may not work in regions outside the IS control.
According to Ghost security group, the app is not available as a download in a marketplace like Google Play store.
Instead, a link to the download is shared between IS members through Telegram app and other encrypted communication methods.
Users can click on the link to download Amaq News on an Android device, the report said.
For IS, social media is prominent in formulating recruitment strategies.
According to TheConversation.com, Facebook is a key platform to gather young fans, supporters and recruits to incite them to acts of violence by the means of propaganda and the use of Islamic grievance.
When it comes to real-time orchestrating of terror strikes, IS network works with encrypted messaging applications - including Kik, Surespot, Wickr and Telegram - that are very difficult to hack.
Ghost security group is a hacking collective similar to Anonymous that focuses solely upon counter-terrorism.
It claims to have "terminated over 100,000 extremist social media accounts" used by militant groups to recruit members.
Earlier, hacker group Anonymous declared December 11 as "International IS Trolling Day" to poke fun at IS militants, using memes and cartoons.
Members of the hacking group also posted images on social media mocking the IS.