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The phrase "are considering that" is correct and usable in written English.
It can be used when discussing a thought process or deliberation regarding a specific idea or proposal.
Example: "We are considering that option for our next project, as it aligns with our goals."
Alternatives: "are contemplating that" or "are thinking about that".
Dictionary
are considering that
verb
To think about seriously.
Exact(23)
"We are considering that option now," she told the ABC in Geelong on Wednesday.
Some state governments are considering that issue; in Minnesota last week, a federal judge overruled a decision by the state's Public Utilities Commission to force Vonage and other VoIP companies to submit to the state's traditional phone regulations.
Here are some of the moves Congress and the White House are considering that could sap business profits, at least in the short term.
The Conservatives have said they are considering that policy, should they be re-elected.
Reports about the increased proliferation rate and colony-forming capacity of DF stem cells by comparison with dental pulp MSCs, are considering that DF stem cells have more advantages as a stem cells source [ 2, 13].
Karlander said others are considering that or transferring to other colleges.
Similar(35)
Ford is considering that kind of setup.
And while you're considering that, also think about this revelation from 2011.
Obama strategists had been considering that point of attack for several weeks.
Westwood, though, must surely be considering that option now for the good of the team.
"That, to me, is frankly a horror that anyone would be considering that".
More suggestions(21)
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com