In Feb 2014, WSJ is reporting that Nokia is working on an Android phone.
In Sept 2010,

Anssi Vanjoki, outgoing head of Nokia’s smartphone division, likens mobile phone makers that adopt Google’s software to Finnish boys who “pee in their pants” for warmth in the winter. Temporary relief is followed by an even worse predicament.  [source]

As someone who has advocated Android for Nokia in the past, I think its just too late now to do that.

Android buyers are in one of the following categories,
1. Google fanboys – they will buy nothing except Nexus devices.
2. People looking for next cool gadget – they buy Samsung since Samsung has deep pockets for marketing budgets (No wonder, its the only Android OEM making any money on Android)
3. Cheap smartphone buyers – they will buy low priced Chinese no-name manufacturers.

At this point in time, when smartphones have been commoditized. Ask yourself, what are the differences between “iPhone 5 and 5s” or “Nexus 4 and 5” or “Galaxy S4 and latest edition of S4”?), its not a question whether Nokia will make money on this, its a question of whether Nokia will even get any market share at this stage.

The choice of not having Google Services on the device will imply that Google Now, Google Maps and Google Play Store (and corresponding ~1 million apps) will be inaccessible as well. That probably puts the nail in the coffin before fetus leaves the womb.