The bid for the politically influential Telegraph has raised questions about the independence of the media and the role of foreign investors acquiring assets that could undermine press freedom.

Around 100 lawmakers, from all parties, have signed a letter opposing the takeover of the right-leaning newspaper and the Spectator political magazine by Redbird IMI, citing concerns about the possibility of editorial interference and censorship.

Media Minister Lucy Frazer is deciding whether the deal should be allowed.

Lawmakers in the upper house of parliament are set to vote on an amendment to the Digital Markets, Competition and Consumers bill on Wednesday that would give ministers a veto over any foreign state's bid for a British newspaper.

The government was still deciding the best route to achieve its goals, one source familiar with the matter said.

A spokesperson for Prime Minister Rishi Sunak said the government "recognised the strength of feeling towards" the amendment by Conservative lawmaker Tina Stowell.

"We're in discussions with her," the spokesman said when asked if the government was considering exploring the possibility of amending existing legislation to prevent a foreign state from owning a British news organisation.

"To be clear, the amendment process is a parliamentary one and is completely separate to the internal government process regarding the sale of the Telegraph," he told reporters.

Were any amendment in the upper house to be approved, it would then go to the House of Commons for lawmakers to consider. The government could also introduce its own amendment.

Frazer received reports from regulators on Monday assessing any potential impact on freedom of expression and accuracy to help inform her decision.

She said on Tuesday she would decide "in a quasi-judicial capacity" whether she was minded to refer the deal for further investigation by the competition regulator.

(This story has been refiled to remove a picture)