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The press proposal had to have a fair hearing, she says.
The Committee of the Privy Council is unable to recommend the Press' proposal for a Royal Charter be granted.
Prescott resigned from the privy council earlier this month in protest against the decision to consider the press proposal despite agreement by all three main parties in March to implement a rival royal charter backed by Hacked Off.
But the full Privy Council is not expected to meet and announce its decision on the press proposal until Wednesday.
Mr Alexander, who told the BBC the sub-committee met on Monday and the full Privy Council will meet on Wednesday to consider the press proposal, said there were a "few remaining" details to be decided - but insisted "no final decision has been made".
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The Lib Dems have always wanted to reject the press proposals on the grounds that the regulator they propose would not be sufficiently independent of newspapers.
A spokesman for Miller said overnight reports that the press proposals had been rejected were "speculation", adding that "there is a proper process to be followed".
The press proposals were not well-received by the reform group Hacked Off which continued to call for a law that sets out standards of effectiveness for a new regulator.
The Privy Council sub-committee consists of four Tories and two Lib Dems - and both parties have been critical of the press proposals, he added.
Ministers insist they are not about to back down and approve press proposals but are, instead, following due process to avoid a battle in the courts - even if that makes further delays inevitable.
At the same time, the president met with some lawmakers at the White House to press his proposal.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com