No, Angular Material 1.x does not support Angular 2+. You can see some of the issues and discussion around this in issue #6336. Basically, many of the existing, tested components would need to be re-written (many months of work).
material2 only recently (Dec 2016) entered beta and may not be ready for all production applications. If you need Material Design for your Angular 2 app ASAP, then contributing to material2 is your best option.
As far as I know, there is no Material Design library that is production ready (out of beta) for Angular 2+.
I was using Angular2-Polymer with Polymer paper elements to get Material Design in my Angular 2+ applications, but breaking changes in Angular 2.2 have broken that integration and may require a significant re-write of the lib.
Material Components for the Web may someday be another option, but they are in alpha atm.