It is narrated from Sayyiduna Ali (may Allah be pleased with him) that when the Prophet (peace and blessings be upon him) began the prayer, he would raise both his hands up to the level of his shoulders, and when he bowed or raised his head from bowing he would do the same; but he did not do so in the prostrations; and when he stood up after the two rak'ahs, he would likewise raise his hands.
One narration of Sayyiduna Wa'il bin Hujr (may Allah be pleased with him) is also like this.
Hadith Referenceالسنن الكبرى للبيهقي / كتاب الصلاة / 2304