Several major notebook makers including Hewlett-Packard, Toshiba, Dell, Acer and Asus are close to making a decision as to whether they will switch to a brand new Google Android operating system for small form factor notebooks as opposed to the traditional Windows OS say sources.

According to Google sources several vendors have been approached to test the Google Android OS which is set to be used in several phones including models from HTC. 

According to the Wall Street Journal HP, the world’s largest PC maker of notebooks has programmers testing Google’s Android system however the company admits that it hasn’t decided whether to bring an Android Netbook to market.

Satjiv Chahil, a vice president of HP’s PC division, declined to say whether H-P plans to sell Android-based devices, but confirmed that the company is studying the Google software. “We want to assess the capability Android may have for the computer and communications industries, and so we are studying it,” Mr. Chahil said.

The move could see a price reduction in models as Google does not profit from the operating system. However Google will benefit if major manufacturers move to the Google OS as it will help them build a more focused audience to deliver advertising to, a move that will hurt Microsoft who currently has 90% of the notebook OS market say analysts.

Dell who already has a Google Android phone have been testing the Google OS since before Xmas say sources.