Motorola on Thursday refused to comment on reports that it is currently hiring engineers to develop its first Android phone, but analysts say the company has a new timetable and could begin shipping Android-powered phones next year.

The world’s No. 3 handset maker, which lost its No.2  slot in the global market and is in danger of losing its position to LG, has committed verbally to Android, but the company has done little since the Android Open Handset Alliance launched back in November.

But there are reports that Motorola, a member of OHA, is ramping up its commitment to Android by hiring a group of engineers to work exclusively on phones that run on the new, open-source operating software.

Android could give Motorola a much-needed foothold in the high-end consumer market, which is currently dominated by Nokia, Apple, and RIM, but because of Android’s immaturity it may not halt Motorola’s market slide.

“It’s still tough to read what the market’s reception of Android will be, but Android is one ray of hope for Motorola to bounce back from its current slump,” said Bonny Joy, an analyst with Strategy Analytics.

The company may have moved up its Android timetable because of the operating system’s similarity to Microsoft’s Windows Mobile operating system, according to Nomura analyst Richard Windsor.

“When Motorola initially came out in support of Android, the company was already in trouble, but things may have changed largely becauseGoogle designed the software to easily fit the Windows Mobile spec,” Mr. Windsor said.

The similarity between the Android and Windows Mobile specifications reduces both the development and manufacturing costs of an Android phone for any company that has as long a Windows Mobile history as Motorola, he said.

“If they work it right they should have one hardware design that they sell into two smartphone niches,” Mr. Windsor said. “It will alldepend on the customer’s wishes.”

Mr. Windsor expects Motorola to begin marketing Android phones next year but believes that the immaturity of Android will offer Motorola very little reprieve from its market slide.

“This is the first iteration of Android, so it is going tohave big issues,” he said. “That does not help Motorola much.”