Yes! You can use the Google Application Engine (GAE) with Django! As I understand it, you can use three different frameworks with Python. Notably, GAE now supports Java. Unless Java has changed since I first learned it long ago, then I'd rather still use Python.
Over the last few weeks, I've been learning Django. It is a python-based web framework. It uses a loosely coupled model with views, templates, models and forms. Like python, it is object-oriented, even when dealing with relational databases. Some of the research that I've done suggests that the Google Application Engine (GAE) uses Django.