It is narrated from Hazrat Abu Saeed Khudri (may Allah be pleased with him) that the Prophet (peace and blessings be upon him) said: You may narrate hadith from me, but do not attribute lies to me, for whoever deliberately attributes a lie to me should make his abode in Hell. And you may also narrate from the Children of Israel; there is no harm in that.
Hadith Referenceمسند احمد / مسند المكثرين من الصحابة / 11424