It is narrated from Sayyiduna Abu Hurayrah (may Allah be pleased with him) that when the Messenger of Allah (peace and blessings be upon him) conquered Khaybar, he called the Jews and said: "We will give you half of the fruit on the condition that you work it. I let you stay as Allah has let you stay." Abu Hurayrah said: The Messenger of Allah (peace and blessings be upon him) used to send Ibn Rawahah, who would make the estimate and then give them the choice to keep it or leave it. The Jews came to the Messenger of Allah (peace and blessings be upon him) and complained. He (peace and blessings be upon him) called Ibn Rawahah and told him what they had said. Abdullah said: "O Messenger of Allah, they have the choice in this: if they wish, they take it; and if they leave it, we will keep it." So the Jews were satisfied and said: "By this the heavens and the earth stand." Then the Messenger of Allah (peace and blessings be upon him) said during the illness in which he passed away: "Two religions cannot coexist in the Arabian Peninsula." When this reached Sayyiduna Umar (may Allah be pleased with him), he sent word to the Jews of Khaybar: "The Messenger of Allah (peace and blessings be upon him) engaged you to work these properties and stipulated that he would let you stay," meaning for as long as Allah would let you stay, "and Allah had indeed permitted your expulsion in the time of the Messenger of Allah (peace and blessings be upon him)." So Sayyiduna Umar (may Allah be pleased with him) expelled them; he removed every Jew and Christian from the land of the Hijaz. Then he divided it among the people of Hudaybiyah.
Hadith Referenceالسنن الكبرى للبيهقي / كتاب المساقاة / 11629