Motorola will revamp its product line to focus on phones running software from Google and Microsoft.
The announcement came as the company said it was postponing plans to sell its loss-making mobile devices division until 2010 and as it announced a $397 million (£242 million) loss in the third quarter.
Co-CEO Sanjay Jha confirmed reports that Motorola will develop mobile phones for the Android platform. The company is also abandoning the Symbian UIQ operating system, and its proprietary mobile Linux OS, to focus on the Google-backed platform and Microsoft's Windows Mobile.
Defending the decision on the company's conference call with analysts on Thursday, Jha said that the experience of trying to commercialize a proprietary operating system and create an ecosystem of third-party developers around it has demonstrated the difficulty of the task.
"We see a large ecosystem centered around the mobile Internet, Android, Windows Mobile," Jha said. He added that Motorola is working closely with the Android platform group and plans to open an office in Seattle to work more closely with Microsoft on Windows Mobile.
Motorola aims to have an Android-based handset out in time for the fourth-quarter holiday sales season in 2009.