Nokia had an agreement with Microsoft (as part of Microsoft's acquisition of its mobile division) to not make Nokia branded phones till 2016, that's only 3 months from now.
So with just 3 months before the embargo is lifted, Nokia is already at work on making their next smartphone and no doubt it will be an Android powered device.
Rumor has it that the device will be branded the Nokia C1 and here are a few renders of the device that just surfaced courtesy of Chinese website: Weibo:
The device is said to have a 5inch display, powered by an Intel Atom CPU, an 8MP camera and a 5MP front facing camera.
The physical design is reminiscent of the Nokia N1 tablet, you can say this is a smaller version of the N1.
This might not be the final design, but might be a design benchmark that Nokia is using. So the final product could be slightly different.