Ibn Muhayriz (may Allah have mercy on him) says: I said to Sayyiduna Fadalah bin Ubayd (may Allah be pleased with him): What is your view, is hanging the thief's hand around his neck part of the Sunnah? He said: Yes, I saw the Prophet (peace and blessings be upon him) cut off a thief's hand, and then he ordered: "Hang his hand around his neck."
Hadith Referenceالسنن الكبرى للبيهقي / كتاب السرقة / 17270