Google Netbook? A netbook featuring Android

The rumors are flying fast and furiously. Asus is said to be working on an inexpensive netbook running Google’s Android software for smart phones.

Other manufacturers are believed to be dipping their toes in the same water.

Well, Google came as close as possible to verifying the computing industry’s nascent love affair with Android on Wednesday at the Goldman Sachs Technology and Internet Conference.

It will drive netbooks, said Alan Eustace, senior vice president of engineering and research. In fact, Hewlett-Packard is one such computer maker working with Android now, he said.

The company wants to build netbooks are very low prices, Eustace told investors during a late afternoon presentation.

Fueling the interest is the growing number of Android devices presently under development. “We have a healthy ecosystem in the sense that lots of devices are coming out,” he said, referring to the numerous smart phones expected this year.